In our October 21 update we reported that the Federal Court was due to hear an appeal to the recent ‘test case judgement’, that found in favour of the Insurers in respect to certain Policy triggers for Business Interruption claims.
What are the Latest Developments?
That appeal of the second test case concluded on Friday 12 November 2021 and the Federal Court reserved its decision. A final judgement is anticipated by the end of 2021 or shortly thereafter.
So What Happens Now?
All parties will await the final judgement of the Federal Court, before final guidance can be provided to Policy holders on any potential Business Interruption claims under their specific Policy.
What Does This Mean for Your Potential Business Interruption Claim?
Once the Federal Court decision is handed down at the end of the year, the Insurance Council of Australia (ICA) in conjunction with the National Insurance Brokers Association, will release specific guidance for Policy Holders as to the circumstances and types of Policy under which they may be able to launch a successful Business Interruption claim.
In the meantime as we set out in our last update, Coastsure is progressively reaching out to our clients who have the Business Interruption cover under their Business Insurance Programs, in order to provide some initial guidance regarding the preparation of their potential claim.
What Do You Need to Do?
In anticipation of the Federal Court decision, it would be prudent to get together as much documentation as you have available that may attest to the extent and circumstances of your Business Interruption experienced during the pandemic.
To assist you to do this, the ICA has prepared a ‘general outline’ of the documents and information required to submit a BI claim. This list is for guidance only as each claim will be different and your insurer may require additional material. However, by preparing the material detailed in this list, your insurer will be able to assess your claim more efficiently. The document can be accessed here: https://insurancecouncil.com.au/wp-content/uploads/2021/10/Business-Interruption-Document_Information_requirements-draft-24.09.pdf
In the meantime, we again encourage clients who have questions in regard to their eligibility to make a Business Interruption claim, to contact their Coastsure Insurance Broker to discuss their situation.
Our next update will follow the release of the final determination by the Federal Court, when we will be able to provide a full summary of the determination and guidance on your next step in the process of a potential Business Interruption claim.
Further details regarding the Federal Court’s determination can be accessed on the Federal Court’s web page