Arch, QBE, Zurich, Hiscox policies all head to court over business interruption language

Amid news from the FCA that a number of insurers have confirmed that they will pay claims, others are heading to court to gain clarity on the obligations of their policy wordings. The test case will have eight defendants - Arch Insurance, Argenta Syndicate Management, Ecclesiastical Insurance Office, Hiscox, MS Amlin Underwriting, QBE, Royal & Sun Alliance, and Zurich while 17 sets of policy wording will be examined. But despite the test case – will the UK face a tsunami of litigation? Hiscox is already facing a barrage of legal action, and, as cases continue to make headlines, so more policyholders may decide to take legal action. And that action may not be just against carriers, with brokers also under threat.

The ramifications of mass legal action could be huge – Fitch has already started downgrading some insurers’ ratings given the possible financial effects, and clients are already questioning whether their claims will be paid. A number of smaller businesses are also questioning their coverage needs.

“Small businesses are dealing with difficult financial conditions and trying to cut expenses, but the survey shows there is also a loss of confidence in insurance,” Maria Albonico, a partner at McKinsey told the Financial Times.

Given the importance of this topic to our industry, Insurance Business has arranged a free virtual conference with leading lawyers this Thursday as part of our free insurance connect event. With speakers including Angus Rodgers, Partner, Steptoe and Johnson LLP and Donna Scully, Director, Carpenters Group, this is an important free live event you shouldn’t miss.

Topics covered in this session include:

• What actions have been brought against the industry to date?
• Discuss the nuances of coverage claims and the impacts on liability exposure
• Lines of insurance most exposed – which parts of the industry are most impacted?
• General liability, property and add-ons such as business interruption
• Breaches of fiduciary duty claims and D&O policies
• Actions for denial of coverage - policy language and interpretation, and claims of bad faith
• Lines of defence - “Exclusion Of Loss Due To Virus Or Bacteria”
• Impacts on future policy coverage terms, exclusions and language
• Class actions against insurers – examining the current state of affairs

Reserve your free seat today, and join hundreds of your peers who have already booked their places.