Insurance and product exclusion for leaky units


A 42 unit complex on Bealey Aveneu was the subject of a leaky home claim.  The developer and project manager had a public liability insurance policy with IAG.  There was a product liability exclusion. In the decision BC83501 & ors v Christchurch City Council & ors  [2013] NZHC 2472 the Court considered an application by the developer/project manager to bring a claim under the insurance policy with IAG.  Justice Fogarty decided that the unit complex was the insured product under the insurance policy and that it would be contrary to common sense to allow the developer/project manager to insure faulty workmanship/performance by an insurance policy.