You may have cover under your Business Interruption Insurance for losses incurred from enforced shut downs during Covid-19
To date, the insurance industry has maintained the view that their business interruption insurance policies don’t provide cover for any losses related to pandemics such as COVID-19.
But this may not be the reality. A Judgment by the New South Wales Court of Appeal on 18 November 2020 has overturned this view in some selected test cases.
The insurer in this case was IAG, who announced to the share market they will take up a $865m post tax provision to cover potential future payouts as a result of these test cases.
Now this case involved an issue of the insurance policy referring to an out of date piece of legislation. So, this test case may not apply to every business interruption insurance policy.
But if you do have business interruption insurance it would be worth your while to go and check the actual policy. If in doubt ask your insurance broker or insurer to confirm coverage in light of this court decision.
Also note that ASIC has already written to insurers to ensure that any information provided to policyholders about their coverage must be clear, accurate, and balanced.
Who knows, one simple question to your broker or insurer could save your business.
If you want a confidential discussion on your business situation, contact me below
Contact Wayne Wanders for to see if you can access the Safe Harbour Laws
To ensure I help your business specifically, the best approach I have found is to have an obligation free session with you. In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face. And this session does not need to be face to face.
At the end of this session, you will have some clarity around whether you can access the Safe Harbour Laws..
Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.
To get help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times, simply use the contact form on the left to email Wayne or call him on 0412 227 052.
Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.
Wayne Wanders, A Real CFO
wayne@aRealCFO.com.au
