Tens of thousands of businesses are to receive insurance payouts covering losses brought on from the coronavirus pandemic, the Supreme Court has ruled.

The test case originally starting in June examined whether wordings used in policies covered closures and business disruption during the first national lockdown.

The Financial Conduct Authority (FCA) initially ruled in favour of small shops in September, highlighting that most were entitled to claim against their insurance cover, or receive compensation for denied claims.

Insurers ordered to pay out over Covid-19 claims

However, the insurance providers later appealed to the High Court ruling in October. The insurance companies involved in the case include Arch Insurance, Argenta Syndicate Management, Ecclesiastical Insurance Office, MS Amlin Underwriting, Hiscox Insurance Company, Royal & Sun Alliance Insurance and Zurich Insurance.

It is expected the news could provide a lifeline for struggling businesses, most hard hit during the pandemic.

Find out more on our coronavirus information hub for retailers