In "Amec Civil Engineering Ltd v Norwich Union Fire Insurance Society Ltd" ([2003] EWHC 1341 (TCC), unreported), Amec (A) undertook land reclamation work on behalf of the States of Jersey (J). Part of the work involved construction of a curved sea defence wall, comprised of substantial reinforced concrete blocks. The visual appearance of the blocks was important as it was to be used as a seat and (J) insisted asbestos spacer blocks were not used in its construction as they would be visible. A used reinforced concrete spacer blocks, but during construction of the wall rust stains appeared, indicating the reinforcement was too near the surface of some of the blocks. A agreed to replace the affected blocks. A claimed against Norwich Union (N) on its all-risks insurance. N argued the policy covered loss or physical damage to A's property, whereas the blocks were just badly built. A's claim was dismissed.
ALL RISK INSURANCE AMEC CIVIL ENGINEERING LTD V NORWICH UNION FIRE INSURANCE SOCIETY LTD REINFORCED CONCRETE CONCRETE BLOCKS SEA DEFENCES