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ARTICLE · 03 AUGUST 2021

Context must be considered where there is ambiguity in an insurance policy

Holman Webb
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Full Court ultimately prefers Policy Interpretation which refers to extrinsic contextual material where Policy terms are not clear.

AustraliaInsurance
Stephanie Davis
Stephanie Davis
Heather McIntosh
Heather McIntosh
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In the Full Federal Court decision of Liberty Mutual Insurance Company Australia Branch trading as Liberty Specialty Markets v Icon Co (NSW) Pty Ltd [2021] FCAFC 126 given on 20 July 2021, the Full Court addressed the construction and scope of thirdparty liability policies in the context of claims made by a building and construction company for losses occurring as a result of the manifestation of serious defects within a building, during the defects liability period.

Factual Background

Building and construction company Icon Co (NSW) Pty Ltd ('Icon') entered into a design and construct contract ('the Contract') in October 2015 to build the now infamous Opal Tower, a 37-storey mixed residential/commercial development property at Sydney Olympic Park. The contract provided for a 12 month defects liability period following Practical Completion, which occurred in August 2018.

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