Casino operator The Star Entertainment Group is working through the process for a business interruption claim, amid expectations that most enterprises won’t be able to gain cover for disruptions caused by the coronavirus.

Leisure and entertainment firms have been hard-hit by enforced government shutdowns introduced last month. The Star halted its gaming activities in Sydney, the Gold Coast and Brisbane on March 23.

“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,” the company said in an update to the Australian Securities Exchange last week.

Insurers in Australia and overseas have highlighted that their exposure to BI losses will be limited due to requirements for physical triggers and epidemic exclusions.

In the US, the industry is having to fend off moves by some legislators who would like to see policies changed retrospectively to allow cover to be provided.

The Insurance Information Institute said last week retroactive payments would bankrupt insurers and undermine a centrepiece of the US economy.

“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.

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