Covid-19 BI claims – furlough payments – out of bounds?
Some of the insurance industry’s leading companies have been ‘found wanting’ by the Supreme Court and are now required to pay claims that they had pleaded were not covered by their various insurance policies.
Next comes the vexing task of ‘adjusting’ the losses claimed by the policyholders and already some insurers have asserted ‘their right’ to deduct grants, loans and Furlough monies from indemnity payments.
Our latest Covid Bulletin examines the controversial question:
Is it Treating Customers Fairly for insurers now to deduct monies that have been paid from taxpayers’ pockets to preserve the livelihoods of the nation (including ‘prudent uninsured’ policyholders) after the insurers have been found to be wrong to have denied payments of bona fide claims for policyholders for more than a year?
Intermediaries’ professional indemnity insurance – COVID cover and Compliance
Increasingly here at Flaxmans we are getting contacted by brokers seeking our opinion about the issues surrounding exclusion from their PI cover of “Covid” related legal liability, the extraordinary increase in premiums that they are facing and indeed no availability of cover at all in some instances.
This is causing troubling concern to otherwise sound and competent intermediaries and is showing potential for damage to relationships between intermediaries and customers; the very thing the FCA is designed to protect. The implications for future litigation by customers against uninsured intermediaries, wholly unconnected with Covid matters, is a serious regulatory and commercial matter.
The economy needs competent intermediaries more than ever before and we cannot see any good reason to penalise them for being unable to obtain insurance in what is a highly competitive and free commercial market where the market has decided to vote with its feet and withdraw cover. The intermediary is powerless to do anything about it.
It prompted us to send a letter to the FCA – if you would like to see a copy of what we have sent please get in touch and we will keep you informed of developments.
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