Written by Ciara Davies

The FCA has published, for consultation, draft guidance on proving the presence of COVID-19 in business interruption (BI) insurance claims.

As part of its decision on the FCA’s BI test case, the High Court declared the types of evidence which policyholders can use to prove the presence of COVID-19.

The guidance is aimed at policyholders, insurers and insurance intermediaries and relates to non-damage BI losses arising from UK government action in response to the pandemic, where in order to make a claim under an insurance contract in force during those events, the policyholder must provide the presence of COVID-19 within a particular area of their premises.

The guidance considers firms’ obligations under the Insurance Conduct of Business sourcebook and the Dispute Resolution: Complaints sourcebook.

 The deadline for responding to the consultation is 18 January 2021. The guidance will have effect from the date it is issued until 31 December 2021. If the decision of the Supreme Court in the BI insurance test case affects the contents of the draft guidance, it will be amended accordingly.