The UK’s financial regulator has confirmed that a pool of insurers will share £7.5m in costs stemming from January’s landmark case within the Supreme Court, which established that certain business interruption policies should have paid out thanks to coronavirus restrictions.

The Financial Conduct Authority included the bill among the opposite levies began during a policy statement on Friday. it’ll be split among almost 300 general insurers and 50 so-called managing agents that operate within the Lloyd’s of London specialist market.

The special fee for the successful case had been consulted on in April. The FCA decided to travel ahead despite industry responses that “queried the appliance of the levy to insurers who didn’t underwrite policies of a kind considered by the test suit , including reinsurers, or who underwrote alittle number”, it said.

The watchdog gave variety of arguments for its decision to travel ahead anyway, including that the test suit clarified issues like causation that have a “wider application” to the world .

There was also “a risk that confidence in insurers and within the insurance market generally would be eroded without a test suit to quickly determine the legal issues that were giving rise to large numbers of disputes between insurers and policyholders,” the FCA said.

The eight insurers who were involved within the test suit are excluded from the payment, given all sides had agreed before the case to hide their own costs.