Small businesses, from restaurants to nightclubs and wedding planners to beauty parlours, on Friday won the right to insurance payouts after Britain’s highest court ruled many policies should cover losses caused by coronavirus lockdowns.

Six of the world’s largest commercial insurers -- Hiscox, RSA, QBE, Argenta, Arch and MS Amlin -- argued many business interruption policies did not cover widespread disruption after government efforts to curb the virus from last March.

But the UK Supreme Court unanimously dismissed appeals by the insurers after scrutinising non-damage insurance policy clauses -- which cover disease, denial of access to business premises and hybrid clauses -- in a comprehensive victory for the regulator and policyholders.

The Financial Conduct Authority brought the closely-watched test case on behalf of policyholders last June, saying it could affect 370,000 policyholders and 60 insurers, paving the way for an estimated 1.2 billion pounds ($1.6 billion) in claims.