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ARTICLE · 04 AUGUST 2015

Don't play with fire: workplace injury and insurance cover

The employer did not comply with the "reasonable precautions" clause of its policy, so it was not entitled to indemnity.

AustraliaInsurance

The recent case of Canny v Primepower Engineering Pty Ltd and Allianz Australia Insurance Ltd [2015] WADC 81 is a classic example of the operation of Murphy's Law, namely; "anything that can possibly go wrong, does."

The facts are relatively simple. Friday 11 November 2011 was the birthday of Primepower's managing director, Mr Peter Allan. It was also Remembrance Day and, importantly, a workday. Mr Allan decided to throw a birthday at Primepower's workplace. The theme of the party was "Eleven." In line with the theme he arranged for 11 kegs of beer ($3,000 worth) for staff to consume. Given the theme it is perhaps not surprising the party also started at 11:00 am. At about mid-day, Primepower's apprentices decided to try to "seize" a disused diesel engine (or to run it to the point of failure). Later that afternoon, Mr Canny, a Primepower employee, decided to get involved. He, along with others at the party had been drinking. At about 7:00 pm a 20 litre jerry can of

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