I think you have chosen a bad example as 47m is past the recreational diving limit of 40m....I can totally understand why an insurance company might balk at picking up the tab for someone's negligence of exceeding a fairly hard depth standard such as 40m...yes I know that BSAC and CMAS, and perhaps a couple of other training organizations specify a deeper depth limit but they also tend to include decompression procedures in their training regime for recreational diving, which the big 3 (PADI, NAUI, SSI) does not.
Let's out these together and consider.Their insurance turned them down for exceeding 60ft.
First, note that different agencies have different policies and teachings, but a dive operation has customers from a variety of agencies.
A dive operation that does not want to be sued in the event of a dive accident needs to follow defensible policies. A defensible policy will need to be objective; otherwise, the employee who made a bad decision to allow a certain diver to do a dive could put the company at risk. A nice objective standard is to require a certain certification level (like AOW) to do a deeper dive. It will be very easy for a dive operation to require such a certification for dives deeper than a specific level like 60 feet. That way there is no argument. If the diver has AOW certification, then it is not the dive operation's fault when it turned out he did not have the skill required for the dive. It could be the dive operation's fault if an employee listened to the diver's description of his or her skills or looked at a logbook and decided that the diver was good enough to do the advanced dive.
The dive operation must then follow its own policies. In the Tina Watson case in Australia, the dive operator was fined in her death because it did not follow its own policy of having a required checkout dive--there was no law requiring it. I once watched as a dive operator explained to a diver why they could not let him do the scheduled dive. The diver only had an OW card, and the dive required AOW. The diver explained that he was really a DM, but he was one of those people who only show a minimal certification card under the inexplicable belief that it somehow benefits them. Unfortunately for him, the Internet was down, so his true certification could not be confirmed. The employee said he was absolutely not allowed to make an exception, so the guy could only do the dive by buddying up with one of the shop's DMs.