Star Entertainment Group loses legal claim against Chubb Insurance

Star claimed the Covid-19 lockdown measures fell under “special risks”.
Star claimed the Covid-19 lockdown measures fell under “special risks”.

Star Entertainment Group has lost its case against Chubb Insurance over pandemic losses.

Australia.- Star Entertainment Group lost its legal claim against Chubb Insurance at Federal Court. It had been demanding the insurer cover losses incurred due to lockdown measures during the Covid-19 pandemic.

Last November, the casino operator sued the insurance company arguing that Covid-19 lockdown measures fall under “special risks” under “risks of business interruption” in an insurance policy signed in November 2019.

Star Entertainment was seeking AU$4bn for its Sydney casino, AU$1.75bn for its Gold Coast casino and AU$1.43bn for its Brisbane casino.

Chubb said the lockdowns were not covered under the policy, arguing that the government’s actions had not caused any physical loss or damage of insured property.

The court ruled in favour of Chubb, however, Star has 28 days to appeal. A Star spokesperson said that the company was “reviewing the judgement and considering our position”.

The case could be a watershed as many other gaming operators have filed similar lawsuits. In June, a group of nine pubs in Melbourne demanded insurers pay out for the economic impact of the Covid-19 pandemic.

The group of pubs was claiming $26m due to the impact of Covid-19 countermeasures. According to The Australian, the pubs argue that between June 30, 2019, and June 30, 2020, a policy to cover events like Covid-19 was provided by the insurance companies.

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The Star Entertainment Group