Business Interruption Insurance Scandal - agents go on waiting

Agents anxious to know if they will receive a payout from their Business Interruption Insurance will have to wait still longer - possibly until the New Year.

A Supreme Court appeal has finished a four day hearing on the isssue, which followed a High Court ruling back in September which broadly favoured policy-holders.

The Financial Conduct Authority represented policy holders against eight insurance firms which had argued - unsuccessfully at the High Court - that the current pandemic was not one of the reasons for paying out on their policies. 

The FCA says its case will affect claims by some 350,000 small and medium sized firms, including hundreds - possibly thousands - of estate and lettings agencies.

Now Lord Reed, a member of the Supreme Court which heard the appeal last week, says he recognises the importance of an early judgement for the businesses affected. 

A statement from the FCA says: ”He said that the Justices would do what they could to provide judgment as quickly as possible, but could not comment on whether that would be before Christmas or in January.”

Agents contacting Estate Agent Today earlier this year said they believed their BI policies covered circumstances where there was an inability to enter and use normal business premises - for example, during the lockdown. 

Others told EAT their policies covered issues regarding instructions from national or local government to cease trading - again, relevant to the lockdown, they claimed.

Here is one agent's struggle for a pay out.