Following a landmark ruling of the English High Court earlier this year, a new judgment of the NSW Court of Appeal provides further insight into the approach of common law courts on COVID-19 business interruption insurance test cases.
Policyholders have won the first Australian test case brought by the insurance industry to fortify its position on rejecting claims made through the COVID-19 pandemic.
On 18 November 2020, the NSW Court of Appeal handed down its much-anticipated decision in HDI Global Specialty SE v Wonkana No. 3 Pty Ltd  NSWCA 296 ("HDI Global"). In a unanimous judgment, the Court found in favour of insured businesses, ruling that insurers could not rely on certain disease exclusion clauses to deny claims by policyholders for loss caused by business interruption due to COVID-19.