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My COVID business interruption insurance claim has been denied. What are my options?


When COVID-19 forced thousands of Australian businesses to close, many naturally turned to their business interruption insurance as a lifeline.

In the face of a global pandemic, insurers are attempting to deny compensation to businesses affected by COVID-19.

If you, like thousands of other businesses, have had your business interruption claim rejected, it’s important to understand that you may still have options. Read on to find out more.

Why has my insurer denied my COVID-19 business interruption claim?

Insurers have denied COVID-19 business interruption claims relying on an argument that the coronavirus falls within an exclusion clause, specifically that the policies don’t cover ‘quarantinable diseases’ under the Quarantine Act 1908.

This argument is despite the fact the Quarantine Act was repealed years ago by the Biosecurity Act 2015. In a November court decision, five judges on the New South Wales Court of Appeal agreed with the view taken by Shine Lawyers that coronavirus is not excluded by the ‘quarantinable disease’ exclusions in business interruption insurance policies.

Is my insurer’s decision on my business interruption claim final?

The good news is your insurer’s decision isn’t the final say on the matter. Your insurer’s decision might not even be their final decision — you should be able to request an internal review of your case. It’s best you supply some additional evidence or arguments if you’re looking for a different decision.

My insurer is still denying my business interruption claim after a review

While it’s possible for an insurer to review its decision, chances are it won’t change. If your insurer is still denying your claim, you have the right to pursue a claim against your insurer through court. This is where Shine Lawyers can help.


Free Business Interruption Insurance Claim Checker

Complete our free COVID-19 BI Insurance Claim Checker to find out whether or not Shine Lawyers may be able to assist with a claim against your insurer arising from losses caused by COVID-19.

The Claim Checker will load in a pop out window and will take no more than 3 minutes to complete.

Once you’ve completed the Claim Checker, if you’re eligible to claim, we offer an obligation-free consultation to discuss your legal rights and talk you through what you can expect from your legal journey if you decide to proceed with bringing a claim to challenge your insurer's decision.

Shine Lawyers’ experience in business interruption claims

Shine Lawyers have the expertise and the experience to manage your business interruption claim.

As a firm that specialises in plaintiff litigation, we understand how to negotiate with the big insurers, and secure you the best possible outcome.

Complete our free Business Interruption Claim Checker to find out if you’re eligible to claim.

Written by Shine Lawyers. Last modified: December 20, 2020.

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