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FCA v Arch – Business, interrupted


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Clare Baker explores what the business interruption insurance test case, FCA v Arch, means for insurers and policyholders.

On 15 September 2020, the High Court (Lord Justice Flaux and Mr Justice Butcher) handed down its judgment in the business interruption insurance test case brought by the FCA on behalf of policyholders affected by the COVID-19 outbreak.

As part of the case, the Court was asked to determine the correct construction of certain business interruption policy terms by reference to a set of agreed facts.

The Court had 21 lead policies to consider from eight insurers (Arch, Argenta, Ecclesiastical, Hiscox, MS Amlin, QBE, Royal & Sun Alliance and Zurich).  The FCA estimated that in addition to the particular policies chosen for the test case, around 700 types of policies across over 60 different insurers and 370,000 policyholders could potentially be affected.

Clare examines the types of clauses the Court dealt with and looks at the consequentials hearing and future resolution.

The article can be read here.

About the author

Clare Baker is an experienced junior specialising in financial services, banking, commercial and insurance law. Clare advises on general commercial issues, including confidentiality and data protection, public procurement (including the operation of the Public Contracts Regulations 2015), compliance with various regulatory frameworks, and jurisdictional/cross-border issues.  She also regularly advises on insurance law.

Find out more

If you would like to discuss any of the issues covered in this article please contact Clare directly or via her practice management team; Matt Sale +44 (0)20 7427 4910 or Peter Foad +44 (0)20 7427 0807.


Barristers: Clare Baker
Categories: News