Insurance providers have appealed the recent High Court ruling that small shops are entitled to business interruption insurance compensation, following Covid-19.

The test case began in June and examined whether wordings used in policies covered closures and business disruption because of the coronavirus pandemic.

The Financial Conduct Authority (FCA) ruled in favour of small shops in September, highlighting that most were entitled to claim against their insurance cover, or receive compensation for denied claims.

Insurers ordered to pay out over Covid-19 claims

In response to the appeal, Sonia Campbell, the lawyer representing retailers in the Hospitality Insurance Group Action, branded the move “disgraceful” and stressed it would threaten small businesses.

“The decision by insurers to appeal is another nail in the coffin for small businesses across the country,” she said.

“The fact they have decided to seek permission to appeal shows they are determined to drag this out to the bitter end.”

Coronavirus: are retailers covered by their insurance?

Businesses will now have to wait to see if the Supreme Court decides whether to hear the appeals. If so, retailers would have to wait several months to know the result.

The insurance companies involved in the case include Arch Insurance, Argenta Syndicate Management, Ecclesiastical Insurance Office, MS Amlin Underwriting, Hiscox Insurance Company, Royal & Sun Alliance Insurance and Zurich Insurance.

Coronavirus

Coronavirus

Retailer Support Hub and Live News Feed

Follow our coronavirus live feed for all the latest news and expert industry advice for the independent retail sector:

Latest coronavirus news and advice for retailers