Liability insurance: calculation of deductible

The New South Wales Court of Appeal in Commonwealth Steel Co Ltd v BHP Billiton Marine & General Insurance Ltd [2018] NSWCA 242 has upheld the first instance decision of Hammerschlag J in his interpretation of a deductible clause in an employers’ liability policy. The question was whether an indexing provision applied to the sum insured or to the deductible.

Commonwealth Steel : the facts