The FCA test case: causal expressions in the insurance context

Given the contractual uncertainty around the validity of claims for losses under business interruption insurance policies due to the outbreak of Covid-19 and the government measures, the Financial Conduct Authority (FCA) sought court declarations as part of a test case. The test case is not intended to cover all possible disputes or any single claim, but to resolve some key uncertainties regarding contractual coverage and issues of causation. Not to provide a thorough analysis of the judgments, the following focuses on the issues of interpretation of causal phrases used in insurance contracts and divergent causal nexus recognised in insurance law.

The test case is not intended to cover all possible disputes or any single claim, but to resolve some key uncertainties regarding contractual coverage and issues of causation. Not to provide a thorough analysis of the judgments, the following focuses on the issues of interpretation of causal phrases used in insurance contracts and divergent causal nexus recognised in insurance law.