COVID-19
Partner Update
Business Interruption Test Case Update October 2021
The Insurance Council of Australia ran an industry test case examining a variety of policy terms in business interruption policies. The Federal Court of Australia delivered a judgement on 8th October 2021.
It is expected that aspects of the judgment will be appealed to the Full Court of the Federal Court of Australia. The Court has indicated that the appeal will be heard in the second week of November 2021.
This means we may not have clarity on the impact on customers’ claims until court proceedings are finalised.
Most Vero policies reference the Biosecurity Act, so the pandemic exclusion clause will apply to claims made under these policies, irrespective of the Federal Court judgement.
For the small number of claims with Quarantine Act reference, we will consider the impact on claims once the court process is complete.
Each customer’s claim is different, and the outcome of each claim will depend upon the customer’s policy and the type of business they run. This includes any exclusions or limitations on cover.
Can I claim if my business has been impacted by COVID-19?
- Customers should lodge a claim if they believe they have a claim. We will assess each claim in accordance with the policy terms and the circumstances of their claim.
Does this mean you will accept my business interruption claim?
- We will assess each claim in accordance with the policy terms and the circumstances of each claim.
- Most Vero policies reference the Biosecurity Act, so the pandemic exclusion clause will apply to claims made under these policies, irrespective of the Federal Court judgement.
