Key background facts
The first plaintiff, Sphere Healthcare Pty Ltd was part of the Aunew group of companies (Aunew Group) and Sphere had been manufacturing therapeutic goods for years at a factory which it leased from Yes Family Pty Ltd, itself a member of the Aunew Group (YF).
Allianz Australia Insurance Limited had been on-risk for Sphere’s ISR program between 2010 and 2019; cover was cancelled in October 2019 when Sphere went into administration (and was subsequently acquired by the Aunew Group in late 2019).
As at late January 2020, Sphere was keen to manufacture hand steriliser during the COVID-19 pandemic and planned to import a large quantity of ethanol from China.
In parallel, Aunew Group was working with three brokers to source ISR insurance cover for the Aunew Group. Aunew Group’s WA broker approached Allianz for ISR cover for Sphere. On 20 March 2020, Allianz wrote ISR insurance cover for Sphere, having been assured by the broker that there was “no change in business
