Possible payout for Covid impacted businesses after court ruling

Insurance groups are shoring up their finances after a shock ruling by the Supreme Court of New South Wales Court of Appeal which opened the door for businesses to claim against Covid related losses.

The Court found incorrectly worded pandemic exclusions policies to be void sparking panic among insurers they could face a flood of claims from businesses impacted by the coronavirus.

Insurance Australia Group has launched a $750 million capital raising to bolster its finances ahead of a possible $865 million payout to small business owners disrupted by the pandemic.