Nursery World - Insurance ruling is a relief

What does the Supreme Court’s recent ruling on Covid-19 and ‘business interruption’ insurance mean?
Stephanie Marshall, a solicitor at law firm Fieldfisher explains the implications for nurseries

Stephanie Marshall, Fieldfisher

On 15 January, the Supreme Court concluded that certain insurance policies covered losses suffered by businesses during the pandemic.

Many policyholders awaiting this decision were nurseries that were forced to close, save for providing care for a small number of children of key workers, and which continued to incur many of their regular business costs while their income was substantially reduced – leading to substantial losses.

A number of these nurseries had business interruption (BI) insurance policies that they assumed would cover them for the losses suffered.

In some cases, insurers accepted liability under these policies, but others disputed liability – creating uncertainty that the Financial Conduct Authority (FCA), the regulator for insurers, decided to clear up by bringing a test legal case.

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