Interpreting Conflicting Policy Provisions In A Professional Indemnity Policy

In a recent decision of the New South Wales Court of Appeal, the Court refused to allow an insurer to rely on a 'Personal Injury' exclusion clause in the Professional Indemnity wording of a combined Professional Indemnity and Public & General Liability Policy to deny indemnity to its insured.

The decision emphasises the need to apply a 'common sense' and commercial approach when interpreting insurance policies and provides some helpful guidance on the interaction between endorsements and general conditions.

Facts

Complete Building Inspections Services Pty Ltd (CBIS) was engaged by Ms Doosey to provide a pre-purchase inspection report on a family home. Mr Walsh provided a report which stated that the overall condition of the building was "considered structurally sound and in a fair condition", the "incidence of major defects" was "low" and the "incidence of minor defects" was "typical". In relation to the building's balcony, the report found that the timber