A Supreme Court ruling could mean an insurance payout for tens of thousands of small businesses to cover losses from the first national COVID lockdown nine months ago.

This decision could prove a lifeline for some businesses who did not receive payments against their business interruption insurance policies.

In the lockdown of last spring, many small businesses made claims through business interruption insurance policies for loss of earnings when they had to close. But many insurers refused to pay.

The Financial Conduct Authority brought a test case, with eight insurers agreeing to take part. The court accepted the arguments from representatives of policyholders and dismissed appeals from insurers, potentially affecting 370,000 small businesses.

The Financial Conduct Authority, the insurance sector, and the Financial Ombudsman will all use the judgement to guide their decisions in other cases.

So if you have a small business with business interruption insurance cover, and were refused a payout last spring, it’s worth checking again.