Big Red Bash organisers lose $3 million legal battle over COVID-19 cancellation insurance claim

Organisers of Queensland’s Big Red Bash have lost their legal battle in the Federal Court with insurers to recoup millions of dollars of losses from the COVID-19 -related halting of the event in 2020.

The outback Queensland event, which had been expected to attract around 10,000 people was cancelled in 2020 resulting in the organisers seeking an in insurance payout of more than $3 million.

While seeking to recover $3,182,444 in indemnity insurance, an exclusion in the insurance policy meant the event was not covered for "any loss directly or indirectly arising out of, contributed to by, or resulting from a communicable disease."

Last month, the Federal Court of Australia ruled against the organisers of the event, Outback Music Festival Group, in their dispute with insurers.

Organisers argued that "the communicable disease led to a restriction on travel" and it was because of those travel restrictions that the event could not proceed.

However, a judge found that "the exclusion is engaged because the decision to cancel was taken because of a communicable disease or the threat of a communicable disease”, adding “the event had to be cancelled for the safety of all concerned in the context of the overwhelming operational difficulties thrown up by COVID-19, any number of which was or were sufficient to make holding the event impossible.

Outback Music Festival Group was ordered to pay costs.