It is undeniable the impact COVID-19 has had on the world in which we live. In Australia, we watched the initial headlines of positive cases, followed by the swift response of hard lock downs. We have experienced the ongoing Government announcements in efforts to aid business health and stimulate our economy. As the financial support slowly ends, clients may be concerned with navigating the impending months ahead.
In November 2020, Insurance Australia Group Limited (IAG:AU) announced it would raise up to $750 million in new equity capital. The move taken by IAG was in response to the Supreme Court of New South Wales Court of Appeal (NSWCA) 18 November judgment on a business interruption insurance test case. In a unanimous decision, the NSWCA determined pandemic exclusions that refer to the Quarantine Act and subsequent amendments, rather than the Biosecurity Act, are not effective to exclude cover for business interruption losses associated with COVID-19.
