VICTORIAN WORKCOVER AUTHORITY V ATS TOWING SERVICE PTY LTD AND OTHERS

[2023] VCC 2010, Victoria County Court, Her Honour Judge Clayton, 17 November 2023

Insurance (liability) – Policy covering liability for occurrences "in connection with" insured business – Whether attack by guard dog within scope of policy

L owned land in Craigieburn, just north of Melbourne. Part of the land was leased to DBC, which operated a hardware business, and the rest of the land was leased to ATS and TW. All the companies were in common ownership.

A fence divided DBC's land from the rest. L purchased a guard dog for the purpose of providing guard-dog services to ATS and TW. In 2016 B was injured in an attack by the dog, which had escaped ATS/TW and entered DBC's land. L had a liability policy covering "… all sums which the Insured shall be legally liable to pay as Compensation in respect of Personal Injury or Property Damage occurring during the Policy Period as a result of an Occurrence happening in connection with the Business of the Insured". The Policy described the "Business" as "Property Owner tenanted as Timber & Hardware Sales".

It was held that the Policy did not respond.

There was an occurrence, but it was not "in connection with" L's business as described in the Policy. A peripheral causal link did not suffice.