This week, the UK High Court clarified the interpretation of business interruption insurance policies in the test case brought by the Financial Conduct Authority ("FCA") against a group of insurance companies.

The High Court largely found in favour of the FCA, who brought this case following a wave of refusals by insurance companies to pay out under business interruption policies in respect of Covid-related losses.

For many art businesses, whether policies do indeed cover the significant losses arising from the pandemic will be fundamental to their recovery and ultimately to their survival. 

There is currently a class action claim being brought on behalf of over 50 claimants (including galleries, museums and sole traders) against a group of insurers relating to these same issues. Whilst there is no "one size fits all" approach, and the ability to recover losses from insurers will depend on the wording of individual policies, this High Court ruling bodes well for the class action claimants and for art businesses generally. 

That said, it is highly likely that this week's High Court decision will be appealed and this is therefore by no means the end of the matter.