EXCLUSION CLAUSES
In two cases this year, subject exclusion clauses have been read
down so as to retain the commercial purpose of the policies.
In Mainstream Aquaculture Pty Ltd v Calliden Insurance
Ltd [2011] VSC 286 (Mainstream decision), Mainstream
Aquaculture Pty Ltd (Mainstream) conducted a commercial fish
breeding business involving the growing and sale of fish and had a
business interruption policy with Calliden Insurance Ltd
(Calliden). On 26 October 2008, the property experienced a loss of
electrical power supply due to the failure of a fuse, which
resulted in the death of a large portion of Mainstream's fish
stock. Mainstream claimed under clause three of its policy with
Calliden, which provided cover for losses arising from the failure
of supply from public utilities.
