COVID-19
Partner Update
Business Interruption Test Case Update
The Insurance Council of Australia has run a test case to determine if pandemic exclusion clauses that reference the Quarantine Act hold for business interruption policies. Most Vero policies reference the Biosecurity Act, so this case has no bearing on those policies.
For those policies that refer to the Quarantine Act, the High Court of Australia has decided not to allow an appeal of the NSW Court of Appeal’s decision that certain pandemic exclusions referencing the Quarantine Act are invalid.
We are considering the impact on our wordings that reference the Quarantine Act but note there are other issues concerning the interpretation of business interruption policies that need to be resolved before any determination can be made on whether policyholders will ultimately be covered. These issues are the subject of legal proceedings underway including a second industry test case.
Each customer’s claim is different and the outcome of each claim will depend upon the customer’s policy, the type of business they operate and the circumstances of their claim. This will include any other exclusions or limitations on cover.
Can I claim if my business has been impacted by COVID-19?
This case has no bearing on any policies or claims with an exclusion that references the correct Act the Biosecurity Act.
Customers should 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 that mean you will accept my business interruption claim?
Customers should 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.
This case has no bearing on any policies or claims with an exclusion that references the correct Act the Biosecurity Act.
