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Business Interruption Insurance pandemic

Many insurance policies now have a business interruption clause. They sell it to cover a business if it has to close because it cannot function, e.g. fire or flood. Many people thought it covered their business over COVID with this clause. Well, it appears that some insurance companies dispute whether COVID is covered here. A meeting was held by newsagents, to which I was invited about the knock backs on claims by insurance companies on their business claim here. This problem, of course, is not only affecting newsagents. I would say almost all retail was affected. 

The situation now is unclear. We had a case on this in the NSW High Court. The insurance company lost, but it was both a narrow claim and it probably will be appealed to the High Court. The problem is that many insurance policies contain several exclusions. In particular, here for infectious diseases and the question of whether COVID is a *quarantinable* disease. This is yet to be finalised in court. Considering the cost to the insurance companies, I am sure they will test every bit of it.

The other issue is that onus on proving the value of your loss will rest with you. I hope you have your financial figures and documents in order.

Still, if you operated a business covered then under business interruption insurance policy, you have a valid claim even if the insurance company has knocked it back.

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