UK businesses that were hoping for resolution to their Covid-related business interruption insurance claims have had their hopes again put on hold after the High Court ruled that insurers could take their appeal against an earlier ruling to the Supreme Court.

Those given so-called “leapfrog certificates” to fast track the appeal include the Financial Conduct Authority (FCA), Argenta Syndicate Management Ltd, MS Amlin Underwriting Ltd, Hiscox Action Group (HAG), Arch Insurance (UK) Ltd, Hiscox Insurance Company Ltd, QBE UK Ltd, and Royal & Sun Alliance Insurance Plc. QIC Europe Limited, however, had its application to appeal denied. Furthermore, Ecclesiastical Insurance Office Plc and Zurich Insurance PLC both won their test cases and are therefore both exempt from the appeal decision.

Ecclesiastical Insurance released a statement in which they said that as a result of the ruling in their case that business losses arising from the COVID-19 pandemic were not covered by their business interruption policies, they will be taking no further part in any Supreme Court proceedings on this matter.

The earlier ruling, made by the High Court, appeared to provide a clear pathway for affected businesses to receive payouts on their business interruption insurance. Under the terms of this ruling, businesses would have been eligible to receive payouts to compensate them to the level of their pre-pandemic finances.

As such, news of the successful appeal has come as something of a blow to the 370,000 or so policyholders who stood to benefit from a favourable ruling, with many accusing insurers of deliberately dragging their feet on the issue.

The hospitality and leisure industries are among those groups for whom the decision could be a make or break situation as most have been unable to receive any kind of business insurance payout for the 105 days of enforced closure they experienced between 20 March and 4 July this year.

The chief executive of the British Beer & Pub Association, Emma McClarkin, expressed her hope that the leapfrog appeal would result in the business insurance claims being resolved “as soon as possible”.

If you work in food and hospitality, the hotel sector, or leisure or retail and would like to find a business insurance policy that is right for your business contact Tredstone Insurance today.