Coronavirus: Supreme Court Judgment in Business Interruption Insurance Test Case: Real Estate Impact
2 February 2021
The English Supreme Court has substantially allowed the appeal by the Financial Conduct Authority (FCA) on behalf of policyholders and dismissed the insurers' appeals in the business interruption (BI) insurance test case brought by the FCA. The result is more BI policies will respond to claims by policyholders who have suffered loss due to the COVID-19 pandemic and the losses recoverable under responding policies may in some cases be greater. We consider what this means for landlords and tenants and future lease negotiations.