Probuild Constructions (Aust) Pty Ltd (subject to a deed of company arrangement) ACN 095250945 & Ors v Allianz Australia Insurance Limited ACN 000122850

Probuild Constructions (Aust) Pty Ltd and its related entities, who were subject to a deed of company arrangement, brought proceedings against Allianz Australia Insurance Limited. The dispute concerned the interpretation and application of an insurance policy, specifically whether it provided cover for certain claims made against Probuild. The matter was heard by the High Court of Australia.

The central legal issue before the High Court was whether the "claims made" provisions within the relevant professional indemnity insurance policies operated to exclude cover for claims that were notified to Allianz after the termination of the policies, even if the underlying acts or omissions giving rise to those claims occurred during the policy period. This involved an examination of the contractual language of the policies and the established principles of insurance law regarding notification requirements.

The High Court held that the "claims made" provisions in the policies required notification of a claim to the insurer within the policy period or an extended reporting period. The Court reasoned that the plain language of the policies indicated that coverage was triggered by the notification of a claim during the currency of the policy, not merely by the occurrence of the event giving rise to the claim. This interpretation was consistent with the commercial purpose of "claims made" policies, which are designed to provide certainty to insurers regarding their exposure at the end of a policy period. The Court affirmed that where a policy clearly stipulates that notification must occur within a specified timeframe for cover to be effective, that stipulation will be enforced.

The High Court dismissed the appeal, upholding the decision of the lower courts.