Business interruption claims. Could we be looking at 'the next PPI'?

More than 10,000 UK policyholders affected by January’s Supreme Court judgment on Covid-related business interruption insurance claims have already received some money, with the total paid out so far topping £470m. The Financial Conduct Authority, which brought the successful test case, released the first batch of data on Monday based on submissions from insurers — setting out how many claims relating to the case had been accepted and paid by the beginning of March. The data mark the first stage of resolution to a bruising dispute between some insurance providers and small and medium-sized companies over whether business-interruption policies should pay out for pandemic-related losses. Even industry executives concede the episode has done damage to the sector’s reputation.