Miners Todd Russell and Brant Webb have been back on the surface for more than 17 months but the rockfall at the Beaconsfield Gold Mine is still causing havoc for their employers.

The Beaconsfield Gold Mine Joint Venturers (including Beaconsfield Gold and its 90% subsidiary Allstate Explorations) have lost their case against QBE Insurance, failing to convince the Victorian Supreme Court the resultant business interruption was covered under its industrial special risks policy.

A rockfall took place at the mine on April 25 last year. On that day, a state workplace health and safety inspector ordered the mine closed.

Both parties had agreed clause 23 of the policy was the only provision by which the policy might respond.

"They therefore agreed to a preliminary hearing on that point," DLA Phillips Fox solicitor Scott Ames told Sunrise Exchange News.

"The question the court was required to determine was whether the policy responded to losses resulting from interruption or interference to the business of the Beaconsfield Mine caused by its closure by order of a civil authority."

The court agreed QBE was not liable because the losses were not consequent on any damage to insured property. Further, the mine was not closed for the purposes of preventing, minimising or retarding any conflagration or other catastrophe.

Wotton + Kearney Insurance Lawyers senior associate Brendan Hammond says his client is pleased with the result but the judgement highlights the need for clear and precise policy wordings.

"Where a business is closed due to the actions of a civil authority, business interruption losses will inevitably result. The case heightens the need for careful consideration at all stages of the underwriting process."

Beaconsfield Gold describes the decision as "adverse" and CEO Bill Colvin is weighing up the possibility of further legal action.

"The Beaconsfield Mine Joint Venture participants, in conjunction with their legal advisers, are now considering an appeal," he said.