The Financial Conduct Authority is set to file a High Court action to clarify the interpretation of business interruption policy wording.

It released an update yesterday which identified the representative sample of policy wordings to be examined in the test case, as well as the insurers who have agreed to be involved in the action.

Policy holders have until 3pm on 5 June to comment on the representative sample.

The insurance sector has rejected the vast majority of hospitality firms claims against business interruption policies.

Richard Bursby, Partner at Taylor Wessing said “The FCA’s process for this action is moving at warp speed. This is necessary so that policy holders can quickly understand their position once the court clarifies some of the key issues around what is covered.

“The FCA are aiming for a hearing in mid-July. However, policy holders have just days to review their policies against the FCA’s representative sample. Taylor Wessing is proud to assist hospitality in this initiative, as legal experts in a sector that has been hardest hit hard by the pandemic and currently has had little by way of insurance pay-out.”

Rob Atkinson, lawyer at Black & White Hospitality, said: “We have been deluged with policies but now have this last chance to widen the scope of the court action - I urge any hospitality business that thinks it has a relevant policy to send it to us.”

UK Hospitality CEO Kate Nicholls said: “So many stakeholders have come together on this crucial matter. We now have a final sprint towards the deadline, to make sure that hospitality’s insurance plight is properly heard. We are urging all hospitality businesses to get in touch, so the industry’s voice is heard and any relevant wording not covered by the proposed test case is included.”