Pollution: liability for voluntary restorative works and issues of non-disclosure

The recent decision in Amashaw Pty Limited v Marketform Managing Agency Ltd [2017] NSWSC 6212 saw an insured service station operator recover costs for restorative, but not preventative, works it voluntarily undertook following an explosion in a nearby sewer main caused by petrol vapour emanating from the service station. The decision provides useful guidance on the bounds of pollution liability coverage together with issues of non-disclosure.

An explosive situation

The plaintiff operated a service station in Sydney. The defendant insurer issued and renewed a combined liability policy to the plaintiff (Policy). Subject to its conditions, the Policy provided cover for damage caused by pollution.