The UK business interruption test case starts in the High Court in London today with the Financial Conduct Authority (FCA) taking the side of policyholders in opening submissions.

Eight days of hearings are scheduled, running from Monday to Thursday this week and next, as the case examines disputed policy wordings that cover non-physical damage but which insurers maintain don’t include losses due to the COVID-19 pandemic.

The Hospitality Insurance Action Group and the Hiscox Action Group, which have flagged class actions, will also be permitted to put forward arguments.

Insurers participating are Arch, Argenta Syndicate Management, Ecclesiastical Insurance Office, Hiscox, MS Amlin, QBE, Royal & SunAlliance (RSA) and Zurich.

“The wordings in this test case were never intended to provide the type of cover for which the FCA contends,” the insurers say in a document.

The case will look at issues including the prevalence and location of COVID-19 cases, the impact of government announcements, and could also touch on the role of brokers.

“The test case is not intended to encompass all possible disputes, but to resolve some key contractual uncertainties and ‘causation’ issues to provide clarity for policyholders and insurers,” FCA says.

Insurers will begin their responses on Thursday, starting with RSA, while QBE is scheduled to appear on Wednesday next week.

Sittings will take place from 10:30am to 4:30pm London time (7:30pm to 1:30am AEST) and can be viewed here.