The head of a leading insurance brokers in Kerry says a UK test case will likely have a huge impact on whether insurance companies in Ireland will pay out claims for business interruption cover.
Chief Executive Officer and Managing Director of the McCarthy Insurance Group, Paul Kavanagh was speaking as the UK business interruption test case continues in the High Court in London; the Financial Conduct Authority is taking the side of policyholders.
The case examines disputed policy wordings that cover non-physical damage, but which insurers maintain doesn’t include losses due to COVID-19; similar cases are planned in Ireland.
Paul Kavanagh says insurance brokers are fighting on behalf of businesses to secure successful claims for business interruption due to COVID-19, but most insurance companies are refusing to pay as they claim the policies don’t cover for a pandemic.
Mr Kavanagh says, however, that a small number of companies are paying out, including AXA which have paid out over 4,000 claims.
