News

CORONAVIRUS: Business Interruption Insurance & Insolvency Rules

Business Interruption Insurance - NEW

The Financial Conduct Authority (FCA) is urging small and medium sized enterprises who have experienced difficulties making claims under business interruption (BI) insurance policies during the pandemic to join its test case challenging insurers’ decision making.

Further details, including the email address to contact, can be found here: https://www.fca.org.uk/firms/business-interruption-insurance

Please note: Responses are required by the FCA by 20 May 2020.

Insolvency Rules - UPDATE

In order to assist companies in dealing with COVID-19, a number of changes are being made to the Insolvency rules. 

The Wrongful trading rules (which can hold directors personally liable for company debts) are being suspended (retrospectively) from 1 March 2020 until such date as the government determines.  

There will be a new moratorium preventing creditors applying for administration orders or petitioning for the winding up of the company while it seeks a rescue or restructure. During this time the company’s supplies will be protected so that the company can continue to access raw materials and utilities. The necessary legislation is expected shortly.

Wednesday, 20th May, 2020