ICYMI: U.K. High Court's Decision Not Applicable To BI litigation In The U.S.
September 21, 2020

The U.K. High Court issued a decision on pandemic-related business income (interruption) insurance (BI) claims against a set of 21 representative policies issued by 8 insurers presented by the UK Financial Conduct Authority (FCA), backing policyholders “on the majority of key issues.”

This decision is unlikely to apply to BI litigation in the U.S., as policies in the FCA test case do not include language requiring direct physical damage to property. As a reminder, a growing list of court decisions in the U.S. affirm that direct physical damage is necessary to trigger a BI claim. 

Media outlets have noted FAIR’s commentary as explanation for why the U.K. findings are not applicable in the U.S.: “Direct physical loss or damage must occur for a BI claim to be triggered, and government orders do not constitute direct physical loss or damage to property.”

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