RITCHIE V INSURANCE AUSTRALIA LTD

[2022] NSWCA 278, New South Wales Court of Appeal, Justice Ward (President), Justice of Appeal Meagher and Justice of Appeal Mitchelmore, 19 December 2022

Insurance (public liability) – Fire caused by sparks from power cutter – Policy exclusion for operation of spark producing equipment – Whether exclusion applied

The assured incurred liability when using a power cutter to carry out grinding works on a steel frame. Sparks were emitted and caused dry grass to catch fire, damaging neighbouring property. The assured’s public liability policy excluded “any liability arising out of or in any way connected with any arc or flame cutting, flame heating, arc or gas welding, electric, oxyacetylene, laser cutting and/or spark producing equipment by or on behalf of the Insured or similar operation in which welding equipment is used, unless such activity is conducted in strict compliance with [named Standards] ...”.