Six insurers drop High Court appeal against BI ruling for some policies

A total of six insurers have now decided not to appear the High Court’s ruling on the FCA business interruption test case relating to three particular policy wordings.

Yesterday RSA said it was not appealing the September 15 ruling on its RSA4/Resilience policies, and it has now emerged that Arch, Argenta, Amlin, Hiscox, and QBE would also not be appealing against Resilience, Eaton Gate Retail, and Eaton Gate Pubs & Restaurants wording rulings, City AM reported.

RSA said it will work with broker Marsh to make interim payments in some cases.

Sonia Campbell, lead partner at law firm Mishcon de Reya representing hundreds of hospitality businesses yesterday called on insurers with similar policy wordings as RSA4/Resilience to make payments without further delay.

However, the insurers would still be appealing to the Supreme Court against the ruling on the Cottagesure and the Eaton Gate Commercial Combined policies.

Two of the other insurers involved in the test case - Ecclesiastical and Zurich - had previously decided not to appeal the judgement, because they said it had ruled in their favour.

Last month, the High Court judges confirmed that they agreed with the majority of the FCA’s arguments, in particular those surrounding the interpretation of coverage triggers for disease and hybrid causes, certain denial of access and public authority clauses as well as the regulator’s view on causation and trends clauses.