We had issued class actions on behalf of thousands of businesses who held business interruption insurance during the COVID-19 pandemic. The class actions are against two major insurers, QBE and Lloyd’s of London.
The class actions argued that class members were entitled to an insurance payout, because their business insurance policy covered them for when their business was closed due to COVID-19 lockdowns. The insurers so far have denied cover to thousands of businesses.
The insurers made an application to the Court that the class actions be declassed. Declassing is an order that the class actions stop being class actions and proceed as individual claims.
On 20 September 2024, the Federal Court of Australia handed down a judgment substantially agreeing with the insurers’ position. The Court then made orders for the proceeding to be heard on a future date to consider, among other things, what orders should be made to declass the proceedings.
If the Court’s decision is not appealed and the class actions remain declassed, group members will not have the benefit of the class action and will have to pursue their claims on their own.
We appreciate that this news will be disheartening to many group members and registrants, especially those who may not have the capacity or the means to bring their own individual claims against their insurer.
If you register using the buttons above, we will keep you informed about the progress of the class actions.
Business Interruption Class Actions
Frequently asked questions
What is the current status of the class actions?
The Federal Court of Australia has issued a judgment saying that the class actions should be declassed.
Declassing means that the class actions will stop being class actions. This means that the group members will have to pursue any legal entitlements they might have on their own.
The applicants’ legal team is considering an appeal. If you register, we will keep you updated about the class actions.
Is there anything I need to do?
There is nothing you need to do. You can register if you would like to be keep updated about the status of the class actions.