Update on Business Interruption Claims Relating to COVID-19

By Ashley Snyder, Centrewest 

In August 2020 the Insurance Council of Australia supported the commencement of a test case in the NSW Supreme Court to consider the application of Quarantine Act type exclusions in business interruption policies of the insurers HDI Global Specialty SE (HDI) and The Hollard Insurance Company Pty Ltd (Hollard) as they applied to COVID-19.

This week the NSW Court of Appeal has unanimously decided against the insurers, finding that these Quarantine type exclusions do not apply to COVID-19.

These insurance companies are currently considering the decision and have until 16 December 2020 to seek special leave to appeal to the High Court of Australia.

An Insurance News article from 8 November provides more detail:

https://www.insurancenews.com.au/breaking-news/bi-test-case-ruling-goes-against-insurers

What does this mean for you?

We believe this case has got a long way to go before we have a clear understanding on what is and isn’t insured. We will continue to keep you updated on any new and further developments.

Suffice to say, if in the long term some insurer policies are found to be liable then clients may have a claim for loss of income during the period of COVID-19 disruption.

If you would like more information about the contents of this article, please contact Rick Post of Centrewest at Rick.Post@centrewest.com.au



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