ROB ROSE: Santam’s big Covid miscalculation
Santam has lost its court bid to avoid paying tourism operators ‘business interruption insurance’. Rather than pay, however, it’s now appealing
Three years ago, insurer Santam flighted an advert focused on the risks of runaway innovation, painting itself as the company that would always ask: "What could go wrong?" You can bet its equation didn’t include a pandemic, its clients claiming billions in "business interruption insurance" due to Covid-19, and its lawyers scrambling for technicalities to ensure Santam doesn’t have to pay. So, what went wrong?
Well, for starters, its hard-won reputation as an insurer that "looks for reasons to pay you, rather than not" is beginning to wilt under the weight of its legal machinations...