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Coronavirus: Nurseries thrown a lifeline in ruling on business interruption insurance

Coronavirus
Early years providers will be hoping that the ruling handed down in the High Court in the insurance test case will mean that they will now be eligible for a payout to cover lost income when they were forced to close.
The result of the test case has implications for 370,000 businesses that were forced to close during the coronavirus pandemic, including thousands of nurseries
The result of the test case has implications for 370,000 businesses that were forced to close during the coronavirus pandemic, including thousands of nurseries

Judges have ruled that the disease clauses in some insurance policies should have meant they are covered.

Most nurseries forced to close as a result of the pandemic were among thousands of small businesses that found they were unable to claim on their insurance, despite having business interruption cover included in their policies.

Many policyholders whose businesses were affected by the Covid-19 pandemic suffered significant losses, resulting in large numbers of claims under business interruption (BI) policies.

The test case was brought by the Financial Conduct Authority (FCA) in order to resolve the lack of clarity and certainty that existed for many policyholders making business interruption claims and the wider market. 

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