Did the CAR/EAR policy cover additional operational risks?
The insured claimed: • The policies covered “all” projects (i.e. units) during the contract period up “until the final hand over certificate” under a type of policy described as including “Operational All Risks” cover. The insurance cover therefore clearly covered operation prior to the final handover. • The court was not entitled, on the basis of the authorities, to refer to the deleted words [“and cover extends to include Operational All Risks for completed phases of the project…”] for the purpose of construing the words that remained. It was necessary to construe the slip as if the document had never contained the deleted words. • In any event, the deleted words were part of the prior negotiations between the parties which were inadmissible.
