A landlord who was sued for damages after a cow escaped her property and caused a car accident has been denied insurance for her legal costs.

The property owner was named as a defendant in civil action brought by a driver who was injured swerving the wandering animal in 2021.

The driver also sued the property’s tenants, alleging their failure to secure fencing caused the incident.

The claimant said she paid $34,391 in legal costs before the proceedings were discontinued last March, and she asked her home insurer, Suncorp, to cover the sum.  

But Suncorp rejected the claim, saying the accident did not occur on the insured property and its policy also excluded legal liability caused by such an animal.

The insurer said the proximate cause of the accident was not the claimant’s failure to maintain fencing but rather the cow’s presence on the nearby road.  

The claimant disagreed, saying failure to contain the cow was the leading cause.  

In a dispute ruling, the Australian Financial Complaints Authority says the cow’s escape could be considered a “single event, accident or occurrence” at the insured property that contributed to the loss.

But it says the animal exclusion applies because it made clear the insurer would not be legally liable for losses caused by “any animal other than a domestic dog, cat or horse belonging to either you or your tenant”.  

AFCA says it is unclear why the fencing failed to contain the cow.

“The complainant ultimately defended the claim which alleged, among other things, that the cow was on the road because the complainant failed to keep the cow within a fenced paddock, allowing it to enter the roadway,” an authority ombudsman said. “I therefore accept that the unexpected and unintended circumstances include the cow escaping from the fenced paddock, however, that the proximate cause of the loss was the cow being on the road.

“The policy provides a clear and unambiguous exclusion for legal liability ‘caused by or arising from’ any animal. I am satisfied that the exclusion clause applies as the legal liability arose from the cow being on the road, which caused the driver to swerve and have an accident.”

Click here for the ruling.