Liability insurance: reasonable care and compliance with statutory requirements

Some policies require the assured to comply with statutory or regulatory standards. A recurring question is whether such an obligation is absolute or whether it is subject to reasonable care restrictions. The most recent decision, Manitowoq Platinum Pty Ltd v WFI Insurance Ltd [2017] WADC 32, a decision of Davis DCJ in the Western Australia District Court, has shown a clear preference for a reasonable care interpretation. Earlier cases demanding absolute compliance were distinguished.

The facts