A judge considering bids to de-class COVID-19 business interruption class actions has said group members can sign up for the representative proceedings but later decide to make claims directly with their insurers.
A judge overseeing four COVID-19 business interruption class actions has questioned a decision by insurers to use ten test cases to resolve the issue of whether they had to indemnify policyholders instead of a class action, which would have been binding.
Insurers will file de-classing applications in four class actions on behalf of small businesses seeking coverage under business interruption policies for losses flowing from COVID-19 restrictions after their test cases largely failed.
An appeals court has dismissed a challenge brought by a Snap Fitness franchisee to a ruling that found insurer Lloyd’s could rely on a conformity clause in its policy to deny business interruption coverage to the NSW gym for losses related to COVID-19.
Lloyd’s has scored a win in a COVID-19 business interruption case, with a judge ruling the insurer can rely on a conformity clause in its insurance contract with a Snap Fitness franchisee to deny coverage.
In rejecting a bid by The Star Entertainment Group to recoup losses stemming from the COVID-19 pandemic, the Federal Court’s Chief Justice did “real and unexplained violence” to the construction of a business interruption policy the casino giant had taken out with Chubb, the Full Court has heard.
The Star Entertainment Group will not be able to recoup losses at its casinos and hotels stemming from the COVID-19 pandemic, after a judge found the company’s $4 billion industrial special risks policy did not cover financial losses from government-imposed restrictions.
COVID-19 was clearly excluded from the business interruption insurance policy taken out by The Star, and a lawsuit seeking coverage for economic loss resulting from the pandemic was “misconceived”, a group of insurers has said.
Insurers for The Star have told a court that the casino’s lawsuit, which seeks to resolve threshold policy coverage issues in a bid to claim the losses it has suffered as a result of government restrictions enacted to stop the spread of COVID-19, is incomplete.
Sydney’s Star Casino is taking its insurers to court in a bid to claim the losses it has suffered as a result of Government restrictions enacted to stop the spread of COVID-19.