IMPORTANT NOTICE
In December 2024, the Court ordered that a notice be sent to group members of what is going to happen in the class action and a clear statement of their rights to pursue any claim they have, and how it can be pursued if they wish to do so.
If you are a group member, you should receive a copy of this notice in February 2025.
You can also view the notice here:
IAL Business Interruption Insurance Class Action
On 1 September 2021, Slater and Gordon Lawyers filed a Business Interruption class action against Insurance Australia Limited (IAL).
If you are a business owner with CGU business interruption insurance and suffered loss to your business as a result of the COVID-19 pandemic, you may be included in the class action.
What is the class action about?
Across Australia, the COVID-19 pandemic had major impacts on business owners. While many business owners with CGU Insurance policies took out cover for “business interruption”, CGU has generally not paid out these claims to cover the losses suffered by business owners.
This class action alleges that losses as a result of the COVID-19 pandemic are not excluded from coverage, and that CGU is required to pay certain business owners under their policies.
Even if you received JobKeeper payments during the pandemic, you may still be covered for your losses.
What has happened so far?
The Court has decided that from 26 March 2025, the IAL Business Interruption Class Action will not continue as a class action.
This means that claims of group members will no longer be determined by the Court as a class action. This does not mean that any individual claim you may have against IAL directly did not succeed. Rather, it means that any claim you may have against IAL will have to be pursued by you either by:
- making a claim regarding COVID-19 related business interruption losses directly with IAL (including via the Australian Financial Complaints Authority); or
- by starting a separate court proceeding.
If you registered interest in the class action pursuant to the notice from the Court sent in February and March 2024, this has no impact on any claim you may bring against IAL.
If your business was a class member in the IAL Business Interruption Class Action, you should receive a Court notice in February 2025 providing you with further information about your options. A copy of this notice can be found in the link above.
In December 2024, the Court also made important rulings regarding how some parts of your insurance policy with IAL should be read and understood, which are contained in the notice at pages 6 to 9. These may benefit you in the future determination of your claim and we encourage you to carefully review these materials and seek advice if you have any questions.
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