Billions at stake for insurers after Guardrisk business interruption ruling
Guardrisk had argued that its policy agreement with Café Chameleon did not cover government’s response to Covid-19
In a landmark decision, the Supreme Court of Appeal (SCA) dismissed with costs Guardrisk Insurance’s appeal against a prior ruling that it must compensate Cape Town restaurant Café Chameleon for business interruption losses stemming from Covid-19 and the ensuing lockdown.
The ruling sets a legal precedent that could potentially put insurers on the hook for billions of rand in business interruption payouts. This follows a string of court losses by insurers that refused to pay claims for losses related to Covid-19 and the subsequent lockdown...