Insurance Law

Authors: Mark Brookes, Partner and Tom Pepper, Solicitor

A recent New South Wales Court of Appeal decision provides a useful illustration of how courts will have regard to an insurance policy’s overall construction in interpreting the meaning of key phrases and clauses.

In Malamit Pty Ltd v WFI Insurance Ltd 1 the court found that a claim made against the insured by a company wholly owned by the insured’s sole director was still a claim made by a ‘third party’ as required by the policy’s insuring clause. Ultimately the claim was excluded under a different clause however the case nonetheless serves as a reminder for insurers to be mindful of the importance of the overall construction of their policies to avoid inadvertently providing cover for unintended risks.

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