Since the outbreak of COVID-19 in early 2020, there has been intense interest in the extent to which business interruption policies would respond to claims for business losses arising from COVID-19.

In September 2020, Sedgwick published an extensive update on the impact of COVID-19 around the globe and the potential insurance response. The publication highlighted the United Kingdom as the main region in which policies were found to respond. It highlighted that, elsewhere, only one region might find business interruption policies responding in significant numbers – that region being Australia.

In this update, we summarise recent key events in Australia, including the result of the highly anticipated judgement in the Second Test case, which was handed down on 8 October 2021.

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Additional contributors:

- Leon Briggs, Head of property and national executive MCL adjuster

- Emma Levett, Partner and head of forensic advisory services Australia

- Rodney Milford, Partner, forensic advisory services

- Tom O’Hara, Manager, forensic advisory services