Insurers lose COVID-19 Business Interruption Insurance Test Case

A significant development in the High Court of Australia has closed the door to one of the primary arguments raised by insurers to deny Business Interruption Claims made by thousands of hard-working business owners who have been adversely affected by the pandemic.

Current Status

On Monday the 21st of February 2022, the Federal Court handed down the latest decision in the acceptance of Business Interruption insurance claims made following the COVID-19 pandemic.

This decision gives hope to policyholders who are entitled to claim Government stimulus grants such as JobKeeper which is now not considered 'savings' to a business. Some policyholders could also benefit from an additional accrual of interest from when indemnity is granted under their policy.

The decision rejected the notion that “quarantinable diseases under the Quarantine Act 1908 and subsequent amendments” was to be interpreted as a reference to ‘human diseases’ under the Biosecurity Act.

This means, for some insurers, if their policy mentions the ‘Quarantine Act’, they are then unable to rely on the ‘Biosecurity Act’ within their policy.

It is important to note there are still cases before the courts and the claims that are being examined through the test case process will continue.

If your Business Interruption claim has been rejected and you are unsure about the wording included in your policy, get in touch today and let our legal experts guide you.

Business interruption insurance court case: a win for business-owners

On 25th June 2021, the High Court refused to grant Special Leave to the first COVID-19 business interruption insurance test case run by insurer DI Global Speciality SE & Anor. The insurer sought to appeal the court's decision that Coronavirus is not a “quarantinable disease” under the Quarantine Act 1908. The High Court’s decision reconfirms Shine Lawyers’ position that this avenue of denial should not be available to Insurers. This is a large step towards thousands of Australian businesses being able to make a successful business interruption insurance claim without the insurers using the definition of “quarantinable disease” to deny their COVID-19-related claim.

Was your COVID-19 business interruption insurance denied? Contact Shine Lawyers

If you, like thousands of other businesses throughout the pandemic had your business interruption claim rejected, you are encouraged to act now and seek expert advice on progressing your claim.

Our lawyers are experts in bringing justice when insurance companies wrongly decline business interruption claims. To determine whether we may be able to assist in pursuing your insurance claim, we have developed an obligation-free claim checker which takes less than 5 minutes to complete.

Alternatively, you can speak directly to a member of our team. It would be our privilege to stand up for you and help you to protect your rights.