Property insurance: damage in the course of repairs

In Baralaba Coal Company Pty Ltd v AAI Ltd [2024] FCA 532 Derrington J, sitting in the Federal Court of Australia, was faced with a claim for additional damage to insured property taking place during the effecting of repairs to the property. The court ruled that the obligation of the insurers was to make payment to allow repairs to be effected, and accordingly they remained liable under that primary obligation to make good later damage closely related to the repairs.

Baralaba : the facts