Last spring, many small businesses made claims for loss of earning when they had to close due to the lockdown. Many insurance companies refused to pay out claiming “only the most specialist policies had cover for such unprecedented restrictions”.

“The ruling provides guidance for a wider pool of 700 policies, potentially affecting 370,000 small businesses – although only some of these will end up with payouts.”

“Insurance policies would have been amended for new and renewing customers since this issue emerged, so losses from the latest lockdown measures in different parts of the UK would be clearly stated as part of the cover – or not – in new business interruption insurance policies.”