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ARTICLE · 23 AUGUST 2020

Running for cover on business interruption insurance policies

Bennett & Philp Lawyers
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This test case may resolve uncertainty and expedite the resolution of claims for small businesses and relevant insurers.

AustraliaInsurance
Chris Lillie
Chris Lillie
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The Insurance Council of Australia (ICA) and the Australian Financial Complaints Authority (AFCA) recently announced their intention to file a test case to consider and resolve questions over the validity of exclusion clauses for cover for listed diseases in business interruption policies.

The test case will assess the validity of cover exclusions in business interruption policies denying cover for losses as a result of quarantinable diseases under the Quarantine Act 1908, which legislation was repealed and replaced by the Biosecurity Act 2015.

The results of the test case are intended to resolve uncertainty and expedite the resolution of claims for thousands of small business and the relevant insurers.

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