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(Reuters) – Small companies in Britain, which demanded that their insurers cover claims for losses accrued during the COVID-19 pandemic, have received more than one billion pounds ($1.4 billion) in full and interim business interruption payouts to date.
Businesses ranging from restaurants to nightclubs and wedding planners to beauty parlors in January won the right to insurance payouts after Britain’s highest court ruled many policies should cover losses caused by coronavirus lockdowns.
The Financial Conduct Authority, which had brought a closely watched test case on behalf of policyholders against major insurers, said on Wednesday that 27,248 companies out of 42,308, which had had claims accepted, had received at least an interim payment.
A federal judge in Chicago on Monday refused to dismiss multidistrict COVID-19 business interruption litigation filed against a Wisconsin insurer by dozens of restaurants and other businesses, stating plaintiffs had suffered direct physical losses that were covered under its policies.