Zurich Australia acknowledges the ruling on 8 October 2021 of the Federal Court of Australia, in relation to the second business interruption test case (the Second Test Case.)

The ruling addressed multiple test case scenarios across a broad range of industries, policies, and coverages, and upheld the insurer cases advanced in eight of the nine matters. In the remaining matter the court found that cover had been triggered but noted that there were substantial issues as to whether the insured could prove any relevant business interruption.

The Federal Court had already planned for this ruling to be appealed given the complex and important nature of the test case and the need to provide judicial clarity to both Policyholders and Insurers. The appeal of the Second Test Case will involve the full Federal Court of Appeal hearing the case in early November 2021.

Rulings from the appeal process will be central to advancing Policyholder claims lodged with Zurich Australia. 

We remain committed to supporting our Policyholders and Brokers.

Zurich Australia strongly encourages all Policyholders who believe they have a COVID-related claim under their business interruption cover to lodge a claim through their Broker if they have not already done so. For an update on existing claims, Policyholders should reach out to their Broker or the Zurich Claims Team. 

If you have any questions about Business Interruption cover for COVID-19 related losses, you can visit the Insurance Council of Australia website or contact your Broker or Zurich Insurance for further information.

For information about the outcome of the First Test Case (HDI Global Specialty SE v Wonkana No. 3 Pty Ltd [2020] NSWCA 296), please click here.