Carmichael welcomes court ruling on lockdown insurance payout


Orkney and Shetland MP, Alistair Carmichael, has welcomed a ruling by the High Court that some insurers should pay out on disease clauses in some business interruption policies. The test case was brought by the Financial Conduct Authority and had the potential to affect 370,000 mostly small businesses. The ruling may be appealed but will allow some businesses to recoup costs incurred by the lockdown, and insurers should contact those affected within the next seven days.

 

Commenting, Mr Carmichael said:

“This ruling is welcome news for small businesses who have been trying to get support from their insurers in these unprecedented circumstances. Hospitality and tourism businesses in the isles in particular have suffered severely from lockdown closures. Even if only a limited number are able to benefit from this then it will still represent progress and help us to survive the low season for business.

 

“Insurers should be contacting policyholders in the coming days. If any businesses believe that they are covered by disease clauses of these kinds and do not hear from their insurers then I invite them to get in touch with my office.”


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