So What Is Accidental Loss Under An ISR Policy?

The Supreme Court of the ACT recently considered the operation and interpretation of a perils exclusion and accidental damage clause in an Industrial Special Risks (ISR) insurance policy (policy) issued by Suncorp Metway Insurance Ltd (Suncorp). Strategic Property Holdings No 3 Pty Ltd (Strategic) was the insured under the policy.

The policy provided indemnity for the physical loss, destruction or damage to a number of properties, including the Australian Defence Academy complex at Weston Creek.

On 30 January 2006, during the period of insurance, there was a major collapse of a section of the roof at the northern end of the building. It was accepted by the parties that the collapse was a result of faulty workmanship.