Liability insurance: compliance with regulatory standards

Some policies require the assured to comply with statutory or regulatory standards. The question is whether such an obligation is absolute or whether it is subject to reasonable care restrictions. The most recent decision, that of the Supreme Court of Western Australia in WFI Insurance v Manitowoq Platinum Pty Ltd v WFI Insurance Ltd [2018] WASCA 89, has rejected the first instance view of Davis DCJ, [2017] WADC 32, [2017] Lloyd’s Rep IR 583, and has concluded that there is no basis for implying a reasonable care restriction where the policy draws a clear distinction between the two concepts.

The facts