Things to consider when making a business interruption claim

Things to consider when making a business interruption claim

Where you have purchased business interruption insurance and you believe you have suffered a loss as defined by your policy, you can consider lodging a claim.

Each claim will be reviewed subject to your business interruption insurance policy and your ability to demonstrate a loss that falls within the scope of cover provided and evidence of the value of the loss being claimed before a claim can be paid.

Where the loss does not fall within the scope of cover then the claim will not be paid.

Questions to Consider

Please provide evidence. This can include:
  • Health authority advice
  • Emergency professional cleaning invoices

You will need to be able to identify where the COVID-19 case was in relation to your business, for example a hairdresser 12 kms away.

Examples of businesses mandated for closure include pubs, licenced clubs, gyms, indoor sporting venues, restaurants, cafes and beauticians.

Please provide you previous 12 months sales data prior to the date of loss, and sales data during the loss period.

Financial information to prepare includes:

  • Quarterly Business Activity Statements
  • Monthly/Annual Profit and Loss statements
  • Monthly payroll summary reports by employee
  • Supporting invoices for increased/additional costs incurred to mitigate loss or maintain business operations
  • Has your business received any government benefits? e.g. JobKeeper
  • Details of all rental relief provided by your landlord

The High Court’s decision in June 2021 means insurers cannot rely on references to the Quarantine Act 1908 (Cth) to deny liability in policies written in the same terms as the policies considered in the first test case. However, there are further interpretations of aspects of business interruption policies that need to be resolved through a second test case to establish whether policyholders will ultimately be covered.

Allianz will respond to affected customers who have lodged business interruption claims on a case-by case basis, however the vast majority of claims will not be able to be finalised until further clarity is provided by the second test case.