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ARTICLE · 02 JUNE 2020

COVID-19: It is Business Interrupted, but will insurers step up?

Holding Redlich
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Principles from UK insurance test cases could provide guidance in Australia to determine COVID-19 coverage disputes.

AustraliaInsurance
Howard Rapke
Howard Rapke
Jessica Tilbury
Jessica Tilbury
Author LinkedIn connections

It's called business interruption insurance, and business across the world has most certainly been interrupted, write Howard Rapke and Jessica Tsiakis.

As Australia responds to government announcements on further easing of COVID-19 restrictions, it's clear that, despite a slow transition to business as usual underway, the unsettling effects of the pandemic will remain long after restrictions are eased.

With disruption reigning, businesses may look to their insurers for certainty. However, most insurers learned the lessons of the 2003 SARS outbreak and have exclusion clauses for communicable diseases and epidemics/pandemics in non-life products such as business interruption insurance.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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