Posted on 16 Dec 2020
Businesses hoping to make a claim for losses suffered as a result of COVID-19 restrictions should check their insurance policy and seek further advice, even if they’re being told by their insurer that they’re not eligible.
Slater and Gordon Senior Associate James Hunter said business owners who suffered a loss as a result of COVID restrictions because their services were customer facing, may be eligible for a business interruption insurance payout.
“A recent NSW court ruling has created uncertainty for many businesses hoping to make a claim but some businesses may be eligible for business interruption insurance payouts,” Mr Hunter said.
“Restaurants, bars, gyms, dance studios and businesses offering public facing services who lost money as a result of COVID-19 may be able to go ahead with a business interruption insurance claim. Businesses that can now potentially make claims include some that were previously denied claims for losses based on the NSW ruling.”
Mr Hunter said it was worth business owners checking their insurance policy and seeking advice, as many still did not they may now be able to claim.
“COVID-19 has disrupted all of our lives this year, and none more so than those businesses that rely on customers. We strongly urge people to check their insurance policy and to seek advice if they think they may be eligible or even if they’re being told by their insurer that they’re not,” Mr Hunter said.
“If businesses are unsure about the exemption detail or timeframe that applies within their policy, it’s best to seek legal advice.
“Even though the current ruling will likely be appealed and continue to playout in the court system - potentially for years - businesses are currently able to challenge exclusions individually.”
Media Contact Anna Chisholm (03) 9602 8683/ 0437 801 093