Swiss Re International Se v LCA Marrickville Pty Limited (Second COVID-19 insurance test cases)

In this case, the Federal Court of Australia considered a series of test cases concerning business interruption insurance claims arising from the COVID-19 pandemic. The proceedings involved multiple insurers and insureds, with each insurer seeking declarations that they were not liable to indemnify the insureds under their respective policies. The court addressed the construction and application of the insurance policies, focusing on whether the policies covered losses claimed by various businesses due to the effects of COVID-19 in 2020. The court found that, except in one case, none of the insuring clauses in any of the policies applied in the circumstances. The court concluded that the insureds had not proven that the insured peril was a proximate cause of any interruption or interference with the business. The court granted leave to appeal for all parties and directed the parties to confer on the terms of any declarations and other orders to be made. The court's reasoning highlighted the importance of a businesslike interpretation of insurance policies, the contra proferentem rule, and the need to consider the context in which the policies were made and the insured perils identified.