Casino operator Star Entertainment Group has become the highest-profile company to say it is pushing ahead with a business interruption claim due to the coronavirus pandemic, as insurers globally come under pressure over cover for impacts from forced closures.

The gaming company shut down its activities in Sydney, the Gold Coast and Brisbane on March 23 due to COVID-19 related government directives for non-essential businesses. The firm has since stood down more than 90% of its workforce.

“The Star has lodged a claim under its business interruption insurance policy in relation to the shutdown of its properties and is working through the claim process,” it said in an update to the Australian Securities Exchange.

Cost and cashflow expectations included in its announcement “do not assume insurance proceeds”, it says.

Business interruption policies vary widely, but the Insurance Council of Australia has said most will exclude claims relating to notifiable diseases such as the coronavirus. A Star spokesman declined to give more information on the company’s claim.

In the UK, the Financial Conduct Authority (FCA) this week wrote to insurers regarding business interruption cover for SMEs, while US President Donald Trump, members of Congress and other legislators have raised issues over the cover.

The New York-based Insurance Information Institute yesterday rejected ideas that policies should be retroactively rewritten to allow claims payouts.

“Like anything in this world there are limits, and one limit for insurance is that it has never been able to offer a policy in a widely available manner for what we are experiencing now – a pandemic,” CEO Sean Kevelighan said.

In London, FCA Interim CEO Christopher Woolard has reiterated that firms generally “should consider very carefully” the needs of customers and show flexibility, and business interruption claims should be assessed and settled quickly where there is an obligation to pay out.

“If there are reasonable grounds to pay part of a claim but not to make the payment of such claims in full, we would like you and your board to adopt an approach of making an interim payment,” Mr Woolard says in a note directed at insurers.

The FCA says conversations with the industry to date indicate that most policies have basic cover, which does not include pandemics, and there would be no obligation to pay out in relation to the current situation.

“While this may be disappointing for the policyholder, we see no reasonable grounds to intervene in such circumstances,” he says.

The Association of British Insurers (ABI) says the FCA letter clarifies the scope of pandemic insurance.

“ABI members are committed to swift payment of valid claims and interim payments to their customers,” a spokesman said.