Recently the Insurance Council of Australia (ICA) is encouraging policyholders to contact their insurer or broker about business interruption claims related to the COVID-19 pandemic.
Currently a number of insurers are running legal test cases in Australia and internationally. They are arguing that business interruption policies do not provide cover for claims arising out of the COVID-19 pandemic.
In Australia, a High Court appeal on the first such test case is scheduled for Friday 25th June, and a second case is due to start in the Federal Court in September.
Due to these legal cases, there is unfortunately no concrete position for clients for business interruption claims arising out of COVID-19.
If you feel you have suffered a business interruption loss as a result of COVID-19, our advice is:
- Firstly, contact your Insurance House Relationship Manager, who will be able to discuss next steps
- In the event these court cases are successful for clients, creating a position where insurers positively assess COVID-19 business interruption claims, each claim will likely be assessed by insurers, according to the terms and conditions of the specific insurance policy in place. It is therefore important that you retain all records and information possible to evidence any loss your business has suffered.
In the meantime, we will continue to monitor these legal test cases, and keep you updated. If you have any questions whatsoever on this matter, please contact us on 1300 305 834 or your Relationship Manager.