Will brokers face professional negligence surrounding business interruption insurance?

Is the FCA test case just the first wave of insurance-related claims on business interruption (BI) cover? Will there be a second wave of negligence claims against insurance brokers? We consider these questions in further detail.

Related briefings

Business Interruption Insurance – an overview and FCA guidance

The widespread disruption and closure of businesses caused by the Covid-19 pandemic and the subsequent national and local lockdowns since March 2020 has brought into sharp focus the question of available insurance cover for losses under business interruption (‘BI’) insurance policies and the extent of that cover.

High Court considers losses excluded under a limitation of liability clause

CIS General Insurance Ltd v IBM United Kingdom Ltd [2021] EWHC 347 (TCC) dealt with a claim for wasted costs and damages resulting from the termination of a contract for a new IT system. The Court found in favour of the claimant but the defendant’s limitation of liability clauses successfully excluded the majority of the value of the claim.

Latest Briefings

Irish regulation in focus: Culture and individual accountability

Increasingly, there is a focus on culture and individual accountability in regulated firms. This has been heightened by various consumer protection issues which have been investigated including the tracker mortgage examination; high profile enforcement actions and the recent engagement with insurers on business interruption cover during COVID-19. Consistently, the Central Bank of Ireland (“Central Bank”) […]

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