Australia Federal court rules insurers don’t have to pay $1bn in Covid claims from businesses

Insurance industryFederal court rules insurers don’t have to pay out more than $1bn in Covid claims from businessesJudge finds insurance firms don’t have to grant claims under clauses that relate to the government closing business premises due to a disease outbreak Get our free news app; get our morning email briefing Ben ButlerFri 8 Oct 2021 05.20 EDTLast modified on Fri 8 Oct 2021 06.08 EDTInsurance companies have won a series of test cases in a federal court battle over whether they have to pay out claims, estimated to exceed $1bn, over interruptions to business as a result of the coronavirus pandemic.Federal court judge Justice Jayne Jagot ruled the insurance companies should not have to pay claims made under clauses that relate to the government closing business premises due to an outbreak of disease at or nearby the premises, damage for an outbreak at the premises itself and damage due to restriction of access to premises because of a catastrophe.Jagot said that other than in one of the test cases – a travel agency in Melbourne, where there was an outbreak of Covid – “I have concluded that these insuring clauses do not apply in the circumstances of each case.”Mice, floods and the climate crisis: why your insurance won’t cover society-wide catastrophes | Richard DennissRead moreShe said in nine cases before the court the actions of health authorities in closing down …

08/10/2021