Appeal court throws out insurer's Covid-19 business interruption case

The first business interruption case to reach the Supreme Court of Appeal has ended in defeat for the insurance company that tried to avoid paying out when its client lost money during the Covid-19 lockdown.

Guardrisk appealed after the Cape Town high court said it must compensate Cafe Chameleon, in Plattekloof, for revenue lost as a result of the lockdown.

The high court ruling was handed down in June and has been followed by several others which all came to the same conclusion about several insurers' refusal to pay business interruption claims.

Cafe Chameleon's appeal victory, announced in a ruling on Thursday penned by judge Azhar Cachalia, sets a precedent for the other cases which insurers have taken to the appeal court.

TimesLIVE