Insurance Law

COVID-19 Causes Event Cancellation and Triggers Policy Exclusion

An infectious disease exclusion clause in an event cancellation insurance policy was engaged in circumstances where a music festival was cancelled as a result of COVID-19.

In Outback Music Festival Group Pty Ltd (formerly known as Big Run Events Pty Ltd) v Everest Syndicate 2786 at Lloyd’s [2002 FCA 13, uncertainty arose regarding whether insurers were liable to indemnify the insureds for claims made under an event cancellation insurance policy. The main issue was whether the infectious disease exclusion clause contained in the event cancellation insurance policy excluded cover after a music festival was cancelled due to COVID-19.

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