Sparking a divide in defining ‘damage’ in business interruption claims? Mainstream Aquaculture Pty Ltd v Calliden Insurance Ltd [2011] VSC 286


The concept of ‘damage’ is fundamental to business interruption insurance because without it there is often no cover. A broad approach to what constitutes ‘damage’ can therefore have a significant impact on the scope of such policies.

The Victorian Supreme Court has generally adopted a wide interpretation of the term ‘damage’. In a recent decision ‘damage’ was held to include a tripped fuse located on the site of another business that stopped electricity from being supplied to the plaintiff’s business, causing loss.

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