COVID-19: FCA Test Case

We understand that many of our customers are facing extraordinary challenges at this difficult time. We value our customers and are committed to supporting them through these challenges by meeting their insurance needs and dealing promptly and fairly with claims.

Holders of policies which provide non-damage business interruption cover and who wish to make a claim in relation to losses suffered as a result of the COVID-19 pandemic should note that the UK Financial Conduct Authority has pursued a test case against a number of insurers (not Allied World) to clarify how certain of their non-damage business interruption insurance policies respond. Whilst we are not a party to the test case, its final outcome may affect some claims under our own policies.

A judgment was handed down by the High Court on 15 September 2020. The judgment was appealed directly to the Supreme Court and the Supreme Court’s judgment was handed down on 15 January 2021. There is no right of appeal from the Supreme Court. Its judgment therefore represents the final outcome in the test case.

We are considering whether the outcome of the test case may affect how our policies respond to claims. Customers with affected claims will be contacted individually as appropriate. However, in the meantime, customers are welcome to discuss any concerns with us directly or via their brokers.

For further information in relation to the FCA’s test case, including a copy of the Supreme Court’s judgment, details of the implications of the test case, please use the Important Links listed to the right.