You may have seen in the press recently the decision handed down in the NSW Court of Appeal in a test case run by the Insurance Council of Australia (ICA) and Australian Financial Complaints Authority (AFCA) test case, with the court ruling in favour of the insureds.
It found that the quarantine disease cover restriction in business interruption policies that referred to the now repealed Quarantine Act, does not exclude cover for listed human diseases under the Biosecurity Act 2015.
Will there be an appeal?
It’s possible this decision may be appealed to the High Court. Also, the ICA has taken steps to obtain clarity on whether the coverage triggers in business interruption policies are satisfied in the circumstances of COVID-19. So further legal action might eventuate.
Determinations on claims will only be made once the legal process is finalised.
What do you need to do?
If you have already submitted a claim under your Business Interruption policy, we will continue to monitor developments and work with your insurer on your claim.
If you have not lodged a claim under your Business Interruption policy, we suggest that you contact us so that we can discuss the process for lodging a claim notification.
Also, the decision only dealt with whether the insurer could rely on an exclusion which referred to the Quarantine Act. The court did not deal with whether any claim falls within the insuring clause.
We’ll continue to update you as more information becomes available. As always, please feel free to get in contact.