Following the judgment delivered on 21st February 2022 by the Full Court of the Federal Court of Australia on the Second COVID-19 business interruption Test Case, both parties sought Special Leave to Appeal certain aspects of the judgement through the High Court of Australia (HCA).

On 14 October 2022, the High Court of Australia rejected the Special Leave to Appeal application for both parties that had been filed in the Second Test Case.  As a result, the Second Test Case process is now finalised.

The Second Test Case sought important judicial guidance for business interruption claims under a wide range of common business interruption policy wordings, involving different sectors and locations within Australia. The Federal Full Court found across all the test cases that cover did not fall due under the Policy and no indemnity payment was owed by Insurers. Our 23 February 2022 press release in respect of the key findings can be accessed here.

This judicial guidance will now allow Zurich, AFCA and the rest of the insurance industry to move to communicate their final coverage decisions for clients.

The COVID-19 business interruption claims that remain open with Zurich can now be determined  using the legal outcomes of the Second Test Case. Zurich will provide individual updates to policyholders on the relevant next steps and process within the next 21 working days.

The availability of cover will ultimately depend on the specific policy wording issued to individual insureds, and their own factual circumstances.

If you have any questions about  the relevance of the judgements in the Second Test Case or are unsure as to whether you may be entitled to claim under your business interruption policy, please contact the Zurich Claims Teams on 1800 611 372 or through our website, www.zurich.com.au/claims. You can also visit the Insurance Council of Australia website for further information. https://insurancecouncil.com.au/bi-test-cases