ARTICLE · 16 JANUARY 2021

Business Interruption Insurance Dispute

ClarkeKann Lawyers

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Despite this favourable outcome, small businesses could still face challenges in making business interruption claims.

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In August 2020, we discussed a pending test case that considered whether insurers could deny liability for small business insurance claims amid the COVID-19 pandemic. The Court found in favour of small businesses, which has resulted in a large number of businesses making claims pursuant to their policies.

These businesses may still find it difficult to make a successful claim however, and ClarkeKann Lawyers has recently been retained to act for a business involved in a dispute with its insurer.

In this article, we consider the decision of the recent test case, and how it will impact small businesses and insurers.

The Issue

Some insurance policies refused cover for any loss caused by a disease specified in the Quarantine Act (Cth). Unfortunately, the Quarantine Act was repealed in 2016 and no longer exists - it was replaced by the Biosecurity Act (Cth).

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