Federal Court Dismisses Class Actions for COVID Business Interruption Claims

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Justice Michael Lee announced on Friday that proceedings are adjourned pending the issuance of "declassing orders," following arguments from insurers against group actions. Policyholders who had hoped to be part of the class actions will receive notices explaining their rights and options for individual claims.

The legal firms involved, including Gordon Legal and Slater & Gordon, had initiated cases against multiple insurers. Specifically, Gordon Legal filed on behalf of Cody Gemtec Retail t/as the National Opal Collection against Syndicate 2003 at Lloyd’s, and Strand Fitness and others against QBE. Slater & Gordon filed cases for CMC Hospitality against Insurance Australia, and Vicki Field Swim School against Hollard.

An IAG spokesperson welcomed the decision, urging customers with potential COVID-19-related business interruption claims to file those claims individually to facilitate efficient assessment through their standard process. The company also highlighted that a further case management hearing is anticipated and the appeal period remains active, promising updates "at the appropriate time."

James Naughton, a partner at Gordon Legal, told insuranceNEWS.com.au that individuals are encouraged to contact the firm to discuss their options for submitting individual claims against their insurers.

The court had previously ordered that policyholders be notified to register their interest in the proposed class actions, which garnered thousands of responses by a set deadline earlier this year.

1. Cody Gemtec Retail t/as the National Opal Collection vs. Syndicate 2003 at Lloyd's
2. Strand Fitness vs. QBE
3. CMC Hospitality vs. Insurance Australia
4. Vicki Field Swim School vs. Hollard

John Berrill, the principal of Berrill and Watson Lawyers, clarified that Friday's ruling addresses only the procedural aspect of how claims should be resolved-individual vs. class actions-without commenting on the validity of the claims. He emphasized the importance of policyholders understanding their rights and considering their options promptly since claims linked to the 2020 pandemic lockdowns are approaching the six-year statute of limitations for legal action.

Published:Tuesday, 24th Sep 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

What NSW Emergency Services Levy Reform Could Mean for Strata Communities

01 Aug 2026: Paige Estritori

New South Wales strata communities should keep a close watch on renewed efforts to reform the way emergency services are funded through insurance premiums. The long-running concern is that adding emergency services charges to insurance bills can make cover look more expensive, particularly for apartment buildings, mixed-use schemes and larger owners corporations already managing high rebuilding values and complex risk profiles. - read more

Insurance Complaints Put Claims Preparation Back in Focus

01 Aug 2026: Paige Estritori

The Australian Financial Complaints Authority’s latest reporting has again highlighted insurance as a major source of disputes, with claim delays, communication breakdowns and disagreements over policy outcomes remaining common pressure points. For domestic and home service businesses, the message is practical: the strength of a policy is often tested not when it is bought, but when a claim is made. - read more

What Storm Claims Teach Freelancers About Cover

01 Aug 2026: Paige Estritori

The insurance fallout from Ex-Tropical Cyclone Alfred is a timely reminder that severe weather is not just a household issue. For Australian freelancers, consultants and sole traders, a storm can interrupt work, damage essential equipment, delay client delivery and expose gaps in cover that only become obvious at claim time. - read more

Why Trainers Should Recheck Cover as Costs Rise

01 Aug 2026: Paige Estritori

Fresh industry commentary on business underinsurance is a timely reminder for personal trainers, fitness instructors and small studio owners to look beyond the headline price of a policy. While parts of the commercial insurance market have become more competitive, rising replacement costs and changing business models can still leave fitness operators exposed if their cover has not kept pace. - read more

What APRA’s Latest Numbers Mean for Life Insurance Buyers

01 Aug 2026: Paige Estritori

The latest quarterly life insurance performance update from APRA points to a sector that appears more stable than it was during the difficult income protection years, but still faces the familiar challenge of keeping cover sustainable and affordable for Australian households. - read more

Click for more Insurance News