Retailers at Sydney’s Bondi Junction Westfield will likely be covered for business interruption after the mall closed for most of last week following a horrific knife attack, experts say, and more than 200 workers' compensation claims have already been lodged.

The centre reopened for normal business on Friday after six people were killed and many others injured on April 13.

The NSW Government advised that businesses “may be able to access business interruption insurance”, and Berrill and Watson Lawyers Principal John Berrill says while most policies require property damage, if a public authority orders a closure then cover usually kicks in.

The extension usually deems murder or suicide at or near the premises to be damage to property, he says.

“I think there undoubtedly will be claims and they could be very significant,” he told insuranceNEWS.com.au.

Mr Berrill says losses can sometimes continue for a lengthy period.

“Even after the order is lifted, you can have ongoing losses in the sense that people might not come back to the shopping centre in numbers for some time.”

LMI Group says its policy comparison tool shows about 92% of the market would provide cover.

"The closure/evacuation by authority extension is now widely accepted as standard cover in a business pack policy and typically provides for a range of causes including (not limited to): bomb threat; drains/sanitation; food/drink poisoning (typically limited to the premises); infectious/contagious disease outbreak; and murder/suicide," COO Carl Greenhalgh told insuranceNEWS.com.au.

However, Clayton Utz Partner Lucy Terracall believes many businesses will not have the required extension and the covid experience has shown there can be complex issues at play. Coverage always depends on policy wording and the best advice for retailers is to speak to their broker, she says.

“The main precondition to cover under property insurance policies is physical damage to the premises. Some policies have extensions to cover business interruption loss where there has been physical damage to a neighbouring premises or a premises in the vicinity. 

“However, in the case of the Westfield Bondi incident, there has been no physical damage to property, as far as I am aware. Therefore, the basic precondition to cover under these policies will not likely be met.”

Ms Terracall says it would have made little difference if the attack had been declared a terrorist incident, because it would not overcome the precondition requiring physical damage.

“Insurance for pure economic loss in the absence of property damage is a fraught area. A very recent example of the complexity of the issues involved is the covid test cases. The coverage analysis comes down to fine distinction and technical legal arguments.”

The NSW Government says it is providing a package of resources for workers and businesses at the centre, and is holding an insurer roundtable today to ensure any workers’ compensation claims are dealt with “promptly and empathetically”.

“Workers’ compensation insurance may cover lost income, along with medical and rehabilitation expenses, if an employee experiences a work-related injury, including psychological injuries,” the Government said.

icare, which runs the NSW workers' compensation scheme, says 227 claims had been filed in relation to the attack as of 9am this morning.