Business interruption insurance: the Australian test case

Judgment in the Australian test case on business interruption cover for Covid-19, Swiss Re International SE v LCA Marrickville Pty Ltd [2021] FCA 1206, was handed down by Jagot J on 8 October 2021. Fifteen claims were selected to represent the many others outstanding, and the policies involved were much the same as discussed in the earlier English and Australian test cases.

There are certain features of the policy wordings and indeed of the Covid-19 situation, that are unique to Australia, but it is of great interest to note the insurers were successful on almost every key point. Permission to appeal was granted immediately. The appeal, LCA Marrickville Pty Ltd v Swiss Re International SE [2022] FCAFC 17, has largely confirmed the first instance decision.