Originally from Alternatives to the High Cost of Litigation

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The United Kingdom has a dispute resolution problem that stems from the pandemic that cannot be entirely unique to Great Britain. Providers of business interruption insurance have been less happy about paying out on policies taken out by businesses in view of the extreme nature of the pandemic.

The beginning of that horror in the spring of 2020 exposed the multitude of policy wordings used in business protection contracts to the variety of ways in which government pronouncements and regulations have affected different businesses.

The resulting dispute resolution nightmare risks jeopardizing both the future of many policyholders’ businesses and the U.K. insurance industry’s reputation. At the time of writing, the story is far from over. It illustrates, however, how the variety of dispute resolution options that the U.K. regulatory and dispute resolution frameworks in this area can work while not hiding their weaknesses.