The owner of a property destroyed in a major industrial fire in Melbourne two years ago has lost a court appeal against Swiss Re’s decision to deny cover.

The case centred on whether a 14-day extension had been added to a policy expiring on August 24, as discussions continued.

Danbol Pty Ltd, maintained in the Victorian Supreme Court that it was covered for the fire on August 30 2018, but Swiss Re said the policy had expired six days earlier.

The renewal sought was not straightforward, as the usage of the site had changed to include storage of decommissioned gas bottles. A number of emails were exchanged and the insurer offered a 14-day extension.

The building owners maintained in the appeal that providing information towards an annual policy proceeded on an “implied acceptance” of the interim cover.

But the appeal court last week upheld the initial decision, finding “the judge was correct in his conclusion that no concluded contract was formed”.

“Ultimately, there is nothing in the applicant’s conduct that manifested with a sufficient degree of certainty that it had accepted the respondents’ offer of a 14-day extension of cover,” the judgment says.

The decision is available here.