Santam ordered to cover business interruption of Ma-Afrika Hotels and Stellenbosch Kitchen

On 7 October 2021, the Supreme Court (SCA) provided legal clarification on the application of certain business interruptions.

By decision of the SCA, the indemnity period applicable to the coverage of business interruption due to contagious and infectious diseases has been set at 18 months.

Santam has been ordered to pay 18 months of business interruption claims to Ma-Afrika Hotels and Stellenbosch Kitchen due to the Covid-19 pandemic. According to the South African insurer, this duration would be three months, hence its dispute with both insureds.