Product liability insurance: property damage

The Full Federal Court of Australia, consisting of Thawley, Downes and Shariff JJ, has in Insurance Australia Ltd v Capral Ltd [2025] FCAFC 46 upheld the reasoning and decision of Jackman J in the Federal Court of Australia in Capral Ltd v Insurance Australia Ltd [2024] FCA 775, setting out the principles governing the meaning of "property damage" where defective products have been installed into other property. The judgment also contains a helpful analysis of the "sistership" exclusion found in product liability policies.

Capral: the facts