Dunsters have successfully represented Café Chameleon, a family restaurant, in its fight against insurers for business interruption insurance cover. In the first Covid-19 pandemic related claim under a business interruption policy the Western Cape Division of the High Court ruled last week that Guardrisk is obliged to indemnify the restaurant for it losses from the outbreak in South Africa.


The question of whether Café Chameleon’s losses were caused by the Lockdown or the outbreak of the virus itself was a key element of the judgment. The insurers argued that the losses were not related to the virus but rather to the enforced Lockdown. The court held that it was fair, reasonable and just that causation be connected to the virus.


A full copy of the exciting judgment can be accessed here, or listen to a discussion of the judgment on SAFM with Ren Dunster.

This matter may proceed to the Supreme Court of Appeal.