Introduction
Many businesses are in the process of assessing how sustainable
continued operations will be after the COVID-19 pandemic ends. With
temporary protections under the Corporations Act, such as changes
to the insolvency rules, coming to an end on 25 September 2020,
businesses will have a better idea as to whether they can recover
from the current economic shock.
Those with active insurance policies may have an additional
safety net if the policy covers involuntary closures from
government laws and/or pandemics. However, many small businesses
are facing challenges in making claims due to exclusion clauses.
These exclusion clauses attempt to exclude certain diseases from
being covered by the policy, but have not accounted for the change
in law.
