Federal Court Dismisses Class Actions for COVID Business Interruption Claims
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.
The Federal Court has determined that business interruption claims related to COVID-19, involving four insurers, should not proceed as class actions.
This ruling obliges individual policyholders to pursue their cases separately if they wish to proceed.
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.
Cody Gemtec Retail t/as the National Opal Collection vs. Syndicate 2003 at Lloyd's
Strand Fitness vs. QBE
CMC Hospitality vs. Insurance Australia
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.
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.
Victoria’s owners corporation sector has moved into a new stage of reform after the state government released its response to an expert review of the Owners Corporations Act 2006. While the review recommended stronger controls over payments and benefits linked to owners corporation managers, including commission-style arrangements, the government has stopped short of an immediate ban and will undertake further analysis before deciding how far the changes should go. - read more
Youi’s latest comments to the federal parliamentary inquiry into small business insurance have put a practical question back in front of Australian sole traders and small operators: is cheaper, simpler direct insurance always better, or does advice still matter when business risks become more complex? - read more
Australian small business owners are showing growing interest in tax audit insurance as the Australian Taxation Office increases compliance attention across several sectors, including professional services. For freelancers, consultants and sole traders, the trend is a timely reminder that tax administration is not just a bookkeeping task; it is a business risk that can create real financial pressure if an enquiry lands at the wrong time. - read more
Australia’s commercial insurance market has moved into a more favourable phase for many business buyers in the first half of 2026, with industry reporting pointing to stronger insurer appetite, broader capacity and easing pressure across several key classes. For personal trainers, fitness instructors and small studio operators, the message is not that cover is suddenly simple or cheap. - read more
A fresh policy debate is emerging over how Australians are introduced to financial products, including life insurance. The Federal Government has been considering tighter controls on lead generation after concerns about poor conduct in parts of the financial services market, including the collapses of Shield and First Guardian. The life insurance sector is now warning that an overly broad crackdown could unintentionally make it harder for everyday households to find suitable cover. - read more
Estate planning is a process that involves the management and distribution of an individual's assets and responsibilities in the event of their passing or incapacitation. It is an essential part of financial planning that ensures your assets are managed according to your desires and your loved ones are taken care of. - read more
Defining life insurance and its importance: Life insurance is a pivotal financial product designed to protect your loved ones from economic hardship in case of your untimely death. It acts as a safety net, ensuring that your family can maintain their standard of living, cover outstanding debts, and afford future expenses like education and retirement. - read more
Life insurance serves as a crucial safety net, guarding your loved ones against the unforeseen. Just as you would take care of your health through regular check-ups, it is equally important to ensure that your life insurance policy remains in sound condition to provide the necessary protection. - read more
Life insurance might not be at the forefront of your mind, especially when you're young and healthy. However, understanding the essence of life insurance early on can significantly impact your financial future and provide much-needed peace of mind. - read more
Financial security is one of the most important aspects of modern family life. Ensuring that loved ones are protected and well-supported in the event of an untimely death is a fundamental concern for many Australians. - read more
Knowledgebase
Loss of Use: Insurance coverage that pays for the additional living expenses if your home is uninhabitable due to a covered loss.
No comments yet. Be the first to share your thoughts.