Business Interruption Insurance claims
Many businesses throughout Australia hold insurance that likely provides cover for losses caused by business interruptions, including interruptions arising from human infectious or contagious disease and which may cover losses relating to the COVID-19 pandemic.
Contesting coverage denials against insurers can be complex, costly and time consuming, and in some jurisdictions, can expose you to adverse costs if the litigation is unsuccessful.
Your policy may respond even if your broker or insurer has said that it doesn’t.
Important Update: Appeal Dismissed
The Full Court has dismissed the appeal against the Federal Court’s declassing decision.
The Business Interruption Insurance Class Actions will not continue as class actions.
On 5 December 2024, the Federal Court made findings and determinations under section 33ZB of the Federal Court of Australia Act 1976 (Cth) and ordered that group members be given an opportunity to opt out. Group members will receive an Opt Out Notice over the next few weeks.
We understand this outcome will be disappointing for many affected businesses.
More information on the QBE and Lloyds Business Interruption Insurance Class Action can be found online at
https://gordonlegal.com.au/business-interruption-insurance-class-action/
What does this mean for my claim?
The proceedings will not continue as class actions.
However, the declassing decision does not determine whether your individual insurance claim succeeds or fails. You may wish to seek advice about pursuing an individual claim.
The Court has also made findings and determinations concerning aspects of policy interpretation. Unless you opt out by 9 November 2026, those findings and determinations will bind you.
Do I need to do anything now?
It is important that you read the opt out notice (linked below) carefully as it may affect your legal rights.
You have two options:
- Do nothing. If you do nothing, you will remain a group member and will be bound by the Court’s findings and determinations under section 33ZB of the Federal Court of Australia Act 1976 (Cth).
- Opt out by 9 November 2026. If you validly opt out by that date, you will not be bound by the Court’s findings and determinations.
The findings concern aspects of policy interpretation and do not determine whether any individual policyholder is entitled to cover under their insurance policy.
Information about how to opt out, including the approved opt out notice, is available in the links below: