Liability insurance: liability for defective installation

In R & B Directional Drilling Pty Ltd and Another v CGU Insurance Ltd (No 2) [2019] FCA 458 Allsop CJ sitting in the Federal Court of Australia considered the liability of insurers for the defective installation of a sleeve to contain cabling. The decision confirms established principles relating to the meaning of physical damage and relating to exclusions for property in the assured’s control, faulty workmanship and assumed liability.

R & B : the facts