The British Insurance Brokers’ Association (BIBA) is making sure that broker members are adequately supported against possible litigation arising from the business interruption test case verdict.
“The judgement in the Supreme Court on the Financial Conduct Authority’s (FCA) business interruption test case substantially allowed the FCA’s appeals,” wrote BIBA executive director Graeme Trudgill (pictured) on LinkedIn when he announced the provision of supplementary guidance for members.
“However, some businesses may feel that they should have legal recourse from the insurance sector, which may result in some insurance brokers becoming embroiled in legal action. If you have had such an approach, it is important to contact your professional indemnity insurance provider.”
According to Trudgill, the trade body has updated the guidance document that BIBA originally released last May. The material is aimed at assisting in the defence of professional negligence claims.
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Law firms like Stewarts Law LLP, Reynolds Porter Chamberlain LLP, and McCarthy Denning have all previously pointed to potential claims by impacted policyholders against their insurance brokers.
Meanwhile, Trudgill went on to note: “The guidance is only available on request by any BIBA broker member and will be provided to you on a strictly confidential basis.
“We have also created an accompanying checklist of actions for members to use with their customers to assist them in procuring the acceptance and payment of claims for COVID-19 business interruption losses. To request access to these documents, please email [email protected].”
In addition to a recent webinar on the subject, BIBA also has a professional indemnity hub for its members.
