Insurers participating in a UK High Court test case over business interruption cover during the coronavirus pandemic will file their defences tomorrow ahead of an expedited hearing scheduled for next month.

The Financial Conduct Authority (FCA) says the court has agreed to requests that the case should be heard urgently.

A second case management conference will be held on Friday and hearing days are scheduled for July 20-23 and July 27-30.

The legal case is focusing on policies which provide cover in principle for business interruption losses without the need for physical or property damage, but which insurers maintain don’t cover losses resulting from the COVID-19 pandemic.

The FCA is putting forward the perspective of policyholders. while the insurance participants are QBE, Arch Insurance, Argenta Syndicate Management, Ecclesiastical Insurance Office, Hiscox, MS Amlin, Royal & SunAlliance and Zurich.

The regulator has also published guidance setting out its expectations for insurers and intermediaries that are handling business interruption claims and complaints while the test case is underway.

Insurers have been asked to review policies that may be affected and notify the FCA of their findings. It says clients with relevant policies should also be kept informed.

“Insurers and insurance intermediaries should ensure that their communications about the test case are balanced,” it says.