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ARTICLE · 05 MARCH 2025

An uncertain future for "prior known circumstance" exclusions in Australia

Gilchrist Connell
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Recent case casts significant doubt on whether "prior known circumstances" exclusions in claims-made liability policies are valid.

AustraliaInsurance
Dan Robinson
Dan Robinson
Celia Wright
Celia Wright
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The recent judgment of the majority of the Full Court of the Federal Court in Allianz Australia Insurance Ltd v Uniting Church in Australia Property Trust (NSW) [2025] FCAFC 8 casts significant doubt on whether "prior known circumstances" exclusions in claims-made liability policies are valid.

The judgment also provides useful commentary on the requirement that facts which might give rise to a claim be notified "as soon as was reasonably practicable" under section 40(3) of the Insurance Contracts Act 1984 (Cth) (ICA).

Background

The judgment concerned the availability of insurance cover to the Uniting Church (UC) under policies of professional indemnity and malpractice liability insurance underwritten by Allianz Australia Insurance Limited (Allianz) in respect of historical sexual and physical abuse claims made against Knox Grammar School (Knox). Allianz had continuously insured UC over the relevant period.

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