High Court Decision not to allow appeal on Quarantine Exclusion only the first hurdle for Insureds.

As I predicted way back on 7 February 2020, the High Court refused insurers leave to appeal the decision of the lower courts that held that insurers are not able to rely on an exclusion that refers to the Quarantine Act 1908 when this act was repealed and replaced by the Biosecurity Act 2015.

This however, is the first of a number of issues that need to be addressed when considering any business interruption claim. Just some of the other issues are:

• Whether the coverage provided is at the premises or within a geographical radius.
• Are adjustments appropriate for the wide area effect on the business
• Should JobKeeper grants be treated as business revenue, a saving or are they not to be taken into account.

Some of these issues have been addressed by the courts in the United Kingdom where the test cases are much further advanced than Australia.

Each claim needs to be carefully considered under the relevant policy by a business interruption expert to determine the fair and reasonable entitlement under the policy that was in force at the time of the disruption.

The last thing any insured needs at this time is to have some “storm chaser” promise the world to an insured only to deliver an atlas and a huge bill for service.

More than ever, it is important for an Insured to be provided correct meaningful advice.

LMI have a team of highly trained experts located in every state and territory ready to assist brokers and clients with these complex claims. You are welcome to contact me or any of the team. To learn more please visit https://lmigroup.io/claims/