Latest progress of Financial Conduct Authority Test Case

On Tuesday 16 June, the High Court in London will hear the FCA’s application for the trial of their Test Case to start on 8 July 2020. The name of the order they are asking the Court to make is an order for an expedited trial.

The Test Case which was started on 9 June 2020 in the Commercial Court names 8 defendants including Hiscox, QBE and Zurich.

The defendant insurers named in the proceedings have all received and declined some claims under the Business Interruption sections of their insurance policies.

The FCA says that the policy wordings of the defendant insurers cover the events of Covid-19 and the Government actions to deal with it. Essentially the FCA is asking the Court to declare that subject to financial and other limits in the policies the insurers should pay out businesses who make claims under the policies which are covered by the Test Case.

My insurance company is not one of the insurers in the Test Case. Will I be able to rely on the Court’s decision?

Probably. Your insurance company will not be bound by the result because they are not named as a defendant but it is likely that the wording in other insurance policies is similar to the wording in the Test Case and therefore a favourable Court decision can only help.

My insurer is one of the named defendants. They say they are waiting on the result of the Test Case. Can they do that?

Insurers should deal with claims in the usual way. You should, therefore, continue to make your claim. The reality, however, is that if the Test Case is dealt with by the Court by mid-July insurers are not going to deal with claims until the outcome of the Test Case.

What do the insurance companies say in response to the Test Case?

We do not know yet. The insurance companies’ responses are due to be served by 23 June 2020.

Will the court make the order for the case to be expedited?

The defendant insurers agree that the case should be expedited and agree the proposed timetable. It is up to the Judge dealing with the hearing on 16 June but in view of the fact that both parties are in agreement about certain parts of the timetable the Court will make the order.


On Tuesday 16 June The Commercial Court made the next order in the FCA’s Test Case relating to Business Interruption Insurance.