This appeal turned on the construction of an insurance policy and whether or not the Port Phillip City Council (as owner of the premises) was entitled to be indemnified under a contractors all risk policy taken out by a contractor (Kane) for an injury to a third-party subcontractor. Two kinks in an otherwise straightforward set of facts were that the injury occurred in an area of the Town Hall which had been excluded from the work program by contractual variation, and that the injured contractor tripped over some boarding which had been installed by Kane in that excluded area.

The Victorian Court of Appeal took a commercial approach and had regard to the rules which govern the construction of insurance contracts, the definition of the “Insured” and the breadth of the phrase “arises in connection with the Business and Activities of the Insured”. It affirmed the first instance decision that the insuring clause had been triggered in the course of the business and activities of Kane (being construction works, in the broader sense) on the Town Hall.

You can deconstruct the case by clicking here.