Tag archives: Australia

Liability insurance exclusions – Professional Advice or Service Exclusion (Australia)

In this case, class action proceedings were brought against the insured claiming damages for property loss arising from the release of, or failure to release, water from two dams. The liability of the insured arose out of its agreement to provide flood management services to the dam operator. The insured had been held vicariously liable … Continue reading

Directors & Officers insurance – Exclusion for director gaining personal advantage (AUS)

The Federal Court of Australia found in March 2023 that a claim under a Directors & Officers Policy was excluded because the director had gained personal advantage from his wrongful act to which he was not legally entitled when he concealed information to avoid cancellation of a contract held with another company owned and controlled … Continue reading

When is a sub-subcontractor an insured (AUS)

An Australian supreme court was faced with the question whether a sub-subcontractor was a named insured or agent of the named insured under a general liability policy relating to demolition work on a construction site where a fire attributed to the conduct of the sub-subcontractor caused damage. The court held that on the policy wording … Continue reading

What is ‘replacement’ of a statute? (Aus)

The interpretation clause in a policy of insurance included a provision that “references to a statute law also includes all its amendments or replacements”.  The Australian Quarantine Act had been replaced by the Bio Security Act, 2015 before the policy came into force but was held to be a replacement statute.  The court held that … Continue reading

What circumstances must be disclosed by a director negotiating a contract? (Aus)

The insured company represented by its sole director and shareholder agreed to construct a residential aged care building on the property.  The company failed to disclose at a material time that the company was in severe financial distress and unable to meet its obligations including tax obligations. The Australian Federal Court held that the failure … Continue reading

Keeping a company’s contract alive creates a ‘personal advantage’ for a director under D&O Policy exclusion (Aus)

An Australian federal court held that where a director failed to disclose the financial distress of his company to the prejudice of the other contracting party under a constructions contract, the director “gained personal profit or advantage” for the purposes of an exclusion of the Directors and Officers Policy and no claim was payable by … Continue reading

Interpreting insurance policies and the quality of the drafting (Australian judgment)

The quality of the drafting of a policy may be taken into account when construing its terms: “The policy should be construed as a whole … It should not be approached by isolating particular fragments or disregarding its overall character … This also requires consideration of the style, layout, language and structure of the instrument.    … Continue reading

Double insurance (Australia)

In this April 2022 judgement, the court reviewed and considered the doctrine of double insurance in the context of a motor vehicle accident claim where the third party insurer settled the claim and then sought a contribution from the insurer of the employer of the driver.  And the effect in that context on double insurance of … Continue reading

Trade credit insurance and Sharia-compliant finance (Australia)

This judgement dealt with a trade credit insurance policy issued by the insurer. Trade credit insurance is a business insurance product which indemnifies a seller against losses from non-payment of a commercial trade debt. The insurer usually pays an agreed percentage of an invoice or a receivable that remains unpaid because of protracted default, insolvency … Continue reading

Broker’s liability to clients (Australia)

This is an Australian case which concerns legal duties that a broker owes to its client (the insured) and the burden of proof that lies with the insured in showing whether brokers breached their legal duty. The broker provided the client with insurance brokerage services for over 30 years. The broker had obtained all-inclusive building … Continue reading

Householders liability insurance exclusion for anyone who usually lives at the insured address (Australia)

This judgment Re Murray (deceased) Crummer v AAI Limited ABN 2020 QSC 155 dealt with the meaning of a householder’s liability policy exclusion for liability for death or injury of anyone who usually lives at the insured address. The court said that the phrase “anyone who usually lives at the insured address” appeared to be a … Continue reading

Interpretation: “subsequent amendment” to a statute does not refer to a replacement statute (Aus)

In June 2021 the High Court of Australia held that a clause in a business interruption policy that excluded diseases that were “declared to be quarantinable diseases under the Quarantine Act, 1908 and subsequent amendments” did not include diseases quarantinable under the Biosecurity Act, 2015 which had repealed and replaced the 1908 Act. The insurers … Continue reading