Co-insurance: creation of co-insurance

In Hansen Yuncken Pty Ltd v Hollard Insurance Co Pty Ltd [2024] FCA 398 Derrington J in the Federal Court of Australia considered a somewhat poorly drafted and inconsistent policy wording to determine whether the principal of the named assured contractor was itself entitled to benefit under the policy. There were no fewer than three policy provisions that extended cover to third parties, although one of them did so on restrictive grounds. The main question was whether those restrictions should prevail over other extensions that were not so restricted.

Hansen Yuncken: the facts