FCA v Arch Insurance – Supreme Court partially rescues the insured

The United Kingdom’s highest court hasdetermined that all the insuring clauses under discussion in the FinancialConduct Authority’s test case will provide cover for business interruptioncaused by the coronavirus pandemic. Adam Samuel analyses the judgment.

Adam SamuelBALLM DipPFS MCISI FCIArb Certs CII (MP&ER) Barrister and Attorney may becontacted atadamsamuel@aol.com.For links to where you can buy thesecond edition of ‘Consumer Financial Services Complaints and Compensation’,see www.adamsamuel.com/book.

On 15 January 2021, the Supreme Court went someway towards rescuing small and medium-sized firms from the effects of Covid-19and the abysmal drafting of their business interruption cover. An earlierarticle dealt with the background issues and the High Court decision from whichboth the FCA and the affected insurers appealed. The main judgment in theSupreme Court was delivered by Lords Leggatt and Hamblen, with whom Lord Reedagreed. There is a concurring effort from Lord Briggs, with which Lord Hodgesided.