Business interruption: the meaning of “catastrophe”

Allsop CJ in the Federal Court of Australia has, in Star Entertainment Group Ltd v Chubb Insurance Australia Ltd [2021] FCA 907, given an answer to a vital question affecting recovery for business interruption losses in the wake of Covid-19, namely: is the virus a catastrophe? The point arose in the context of an ordinary business interruption policy, but the decision will be of huge interest to the reinsurance market, where coverage is for property and catastrophe. Can there be a catastrophe where there is no property damage?

Star Entertainment : the facts