COVID-19, business interruption, and the liability of insurance brokers.

Abstract

The coronavirus (COVID-19) pandemic resulted in significant global challenges and uncertainties for several businesses and insurers. This study examined insurance brokers' duties, the regulations governing their operations, and the nature and implications of business interruption coverage. The study used a comparative approach to demonstrate the measures and legislation in insurance law in South Africa and other jurisdictions. It aims to determine whether insurance brokers may be legally liable for claims resulting from COVID-19. The research examined a broker's function in procuring insurance coverage on behalf of clients and the statutory provisions governing the operation of their insurance policies. The analysis explored the formation of insurance contracts, business interruption policies, the interpretation of policy wording, case law related to COVID-2019 claims, and Financial Sector Conduct Authority responses to insurers denying coverage for losses incurred by businesses owing to the outbreak.