CaseOutcomes
Insurance · United Kingdom

FCA v Arch Insurance and others

COVID-19 business interruption insurance

FCA appeal substantially allowed

Outcome at a glance

The Court substantially allowed the FCA’s appeal and dismissed the insurers’ appeals, resolving key coverage questions in the business interruption test case.

Allegations & issues

The parties disputed whether selected policy wordings covered losses caused by COVID-19 and the public-health response.

Key rulings & findings

The Court addressed disease, prevention-of-access and hybrid clauses, causation, and loss adjustments. Coverage depended on the particular wording and satisfaction of its requirements.

Admissions

This was a judicial interpretation of insurance contracts, not an admission of misconduct.

Disposition

FCA appeal substantially allowed; insurers’ appeals dismissed on 15 January 2021.

Penalties, damages & redress

The test-case appeal did not set a single compensation award for all policyholders.

Restrictions & obligations

No regulatory trading ban was the subject of this decision.

THE UNDERLYING RECORD

Primary sources

Read the full documents for their precise wording and context. Regulator summaries are identified separately from court records.

Court record · supremecourt.uk01 · Supreme Court · Connected appeal record and judgmentCourt record · supremecourt.uk02 · Supreme Court · Press summary, 15 January 2021