Insurance giants facing COVID-19 payout class actions after stuff up with contract fine print
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WedWednesday 27
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WedWednesday 27
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Furious small business owners are vowing to fight to the end against Australian insurance companies, in an increasingly heated battle over pandemic payouts that is likely to drag on for years.
Key points:
Court decisions are calling that into question
Lawyers at several firms are investigating potential class actions against the industry
There are now at least five legal firms investigating potential class action lawsuits against the insurance industry over its denial of business interruption (BI) policy payouts during the pandemic.
Clayton Utz and ICP begin business interruption insurance class action
By Tony Zhang|18 January 2021
Investor Claim Partner and Clayton Utz are starting a collective action on behalf of thousands of business interruption (BI) insurance policyholders against insurers that have knocked back claims for losses following forced COVID-related closures.
The move is aimed to provide a potential lifeline for tens of thousands of businesses crippled by financial losses incurred during COVID-19 lockdowns, including restaurants, bars, gyms, cinemas, retailers and tourism operators.
It follows a NSW Court of Appeal ruling last November in a test case that insurers could not rely on standard “quarantinable disease” exclusions when knocking back claims for losses caused by COVID-19 under business interruption (BI) policies. Insurers had incorrectly asserted that the exclusion was a “pandemic exclusion” and the Court found that it did not apply to COVID-19.