MP welcomes Supreme Court ruling as a benefit for West Norfolk businesses during coronavirus
North West Norfolk MP James Wild has welcomed the court ruling that the big insurers have to pay out to businesses due to Covid-19.
The Supreme Court ruling on Friday completes the legal process for impacted policies and means many thousands of policyholders will now have their claims for coronavirus-related business interruption losses paid.
Mr Wild welcomed the news for West Norfolk businesses at a time of uncertainty and great challenges.
He said: “During the pandemic I’ve raised cases with insurance firms on behalf of constituents who believed their policies covered losses due to Covid.
“This welcome ruling should benefit firms in North West Norfolk. Policyholders with affected claims can expect to hear from their insurer soon.”
The judgment brings to an end legal arguments under 14 types of policy issued by six insurers, and a substantial number of similar policies in the wider market which will now lead to claims being successful.
The Supreme Court ruled that cover may be available for partial closure of premises, as well as full closure, and for mandatory closure orders that were not legally binding.
It also ruled valid claims should not be reduced, and that two additional policy types from insurer QBE Insurance Group provide cover.
More policyholders will have valid claims and some pay-outs will be higher. Critical payments should be made without delay.
Sheldon Mills, executive director, consumers and competition at the Financial Conduct Authority said: “As we have recognised from the start of this case, tens of thousands of small firms and potentially hundreds of thousands of jobs are relying on this.
“We are grateful to the Supreme Court for delivering the judgment quickly. The speed with which it was reached reflects well on all parties.”
She added: “Coronavirus is causing substantial loss and distress to businesses and many are under immense financial strain to stay afloat.
“We will be working with insurers to ensure that they now move quickly to pay claims that the judgment says should be paid.”