| The Morrison Government must ensure large general insurers are doing everything possible to help protect Australian small and medium business customers in the wake of the COVID-19 crisis. Labor welcomes the agreement between the Australian Financial Complaints Authority (AFCA) and the Insurance Council of Australia to seek a court judgement on the application of infectious diseases in business interruption insurance policies. Labor understands the frustrations of many small and medium enterprises (SMEs) that have been left in the lurch by their insurers after business interruption claims were rejected. The outcome of the test case will provide further certainty for loyal small business customers that have paid their premiums but been denied payouts when it counts. Labor is concerned that insurers refusing to do their job could impact the viability of SMEs and lead to further job losses across the nation. One of the big insurance companies, QBE, had previously sought to withdraw new trade credit protection for many small business customers and significantly reduced cover for other clients. Now is the time for the Morrison Government to be taking all possible action to support SMEs impacted by COVID-19. |
