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IMPORTANT UPDATE – BUSINESS INTERRUPTION INSURANCE – BRIDGE POLICIES VIA COVÉA INSURANCE PLC - UPDATED:  30th July 2020

Many of you would have seen our previous article relating to the above - https://www.balens.co.uk/covid/covid-bi.aspx.  Once again, matters have moved on and we aim to provide you with an update regarding the following:

  • The Financial Conduct Authority (FCA) latest position
  • Action taken by the Insurer – Covéa Insurance plc (Covéa)
  • Balens next steps

Progress 1   - The FCA’s Latest Position

Our previous article provided details relating to why the FCA action was being brought. The FCA test case is well underway and is likely to last until the 30th July 2020. 

Guidance on the timetable of events and other useful information is available via: https://www.fca.org.uk/firms/business-interruption-insurance#latest-updates  

When the Court findings have been released, we will digest and provide a suitable update for our Policyholders.

Progress 2– Covéa Insurance plc Actions

In response to the FCA Business Interruption Test case, Covéa have written to all Policyholders directly, who have submitted claims and/or complaints and may be affected by any Court ruling.  The letters sent are reflective of the type of contents package policy in force that Balens underwrite via Covéa.           In brief, their latest position is as follows:

Bridge – Business Protection Policy

Covéa identified that any claim and/or complaint may be affected by the outcome of the FCAs Test Case and any Court findings.  This means that Covéa may need to review decisions made previously.  It may also influence how the Insurer will make decisions going forwards, and will clarify any action they may take in re-assessing claims/complaints, if relevant.  Covéa will provide a subsequent update to any Policyholder that has received a letter previously, relating to the matter.

Bridge Babtac Package Policies

For the Bridge Babtac Package policy, claims and/or complaints will not be affected by any Court ruling related to the FCA case.  This is due to the cover under this Policy is specified disease cover which sets out an exhaustive list of diseases which are covered by the Policy and Covid-19 is not one of the covered diseases. The FCA test case is not considering policies which only cover a specified list of diseases.

Furthermore, the policy requires business interruption losses consequent upon specified disease to be caused by the occurrence of the disease at the business premises.  The FCA test case is not considering clauses which require the disease to occur at a policyholder’s premises. 

This means that the final resolution of the test case will not affect the decision on these claims, and Covéa will not be re-assessing the stance regarding any claim and/or complaint submitted.

Policy Holder options

If you have not submitted a claim/complaint directly to Covéa then, you will not have received any correspondence direct from them.  You do have two options available at this present time: 

  • You may still submit a claim as per the guidance provided in our previous article (email full details to James.Kemp@coveainsurance.co.uk)    or
  • You can await the outcome of the FCA’s test case and any appropriate findings.  We will provide guidance on any next steps available to you.

Progress 3 – Balens Actions

As per our previous articles, we are monitoring the situation relating to this matter, on a daily basis.  We will await the outcome of the FCA test case and ensure any legal rulings or guidance provided is implemented, in the best interests of our Policyholders.  Depending on the outcome, we will review our own legal stance. 

Our main aim is to continue to support our Policyholders at this difficult time.  Therefore, if you have a specific query which has not been addressed by the above update, please contact us, using the following contact details:

Finally, as we have noted in other communications, most of our Team Members are continuing to working from home, and whilst our commitment to customer service remains strong, this has impacted upon the speed of our usual service standards.  We ask that you contact us by e-mail in the first instance, to assist us in assisting you.