ASIC on business interruption insurance claims and COVID-19

ASIC is encouraging small businesses to contact their broker or insurer and ask whether their business interruption policy covers COVID-19 related losses.

Written on 31 March, 2021
Tiffany Eastland

The Australian Securities & Investments Commission (ASIC) is encouraging small businesses to contact their broker or insurer and ask whether their business interruption policy covers COVID-19 related losses, or could, depending on the outcome of the ‘test cases’.

In the article published on its NewsHub yesterday, ASIC said the outcome of the test cases before Australian courts should clarify whether business interruption policies cover losses from the COVID-19 pandemic.

It also advises policy holders to start gathering evidence now to prove their claim and calculate losses, suggesting they speak to their broker, if they have one, who can advise on what evidence to collect.

NIBA CEO, Dallas Booth, said it is pleasing to see that ASIC acknowledges the important role insurance brokers play in advising their clients on insurance coverage and the potential to make a claim for business interruption as a result of COVID-19.

“NIBA encourages all insurance brokers who believe their client may have a business interruption claim to submit the claim to the insurer for consideration.”

You can read the full article here.