ARTICLE · 01 FEBRUARY 2012

Insurance: Allocation Of Losses

CMS Cameron McKenna Nabarro Olswang

Explore more from CMS Cameron McKenna Nabarro Olswang

The Court of Appeal recently confirmed the rule that as soon as the insured’s liability is established then its insurer also becomes liable.

United KingdomInsurance

Stephen Kilner

Vere Wheatley

The Court of Appeal recently confirmed the rule that as soon as the insured's liability is established then its insurer also becomes liable.

A tower of insurance contracts provided Black and Veatch (a group of engineers) with worldwide cover of US$60 million in excess of the deductible and self insured retention. Lexington wrote the primary layer, whilst B&V's captive insurer, Teal, wrote the next three layers in the tower.

A top and drop insurance provided further cover of £10 million upon the exhaustion of the tower. This insurance was also written by Teal, but was different in that it excluded US and Canadian claims. Teal's participation in the top and drop insurance was reinsured by WR Berkley.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Connecting Capital And Insurance Risk: Lloyd’s And The UK’s Evolving Insurance Landscape

United KingdomInsurance

Freshfields Bruckhaus Deringer

Rectification Refused In Claim For Covid-19 BI Losses

United KingdomInsurance

Burned By The Small Print? High Court Requires Strict Compliance With Specified “reasonable Precautions” For Hot Works

United KingdomInsurance

Herbert Smith Freehills Kramer LLP

Warranty, Service Contract Or Insurance? Navigating The Regulatory Landscape For Product Protection Arrangements

United KingdomInsurance

Final Call For Consultation Comments: UK Captives

United KingdomInsurance

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Insurance
- Insurance Laws and Products

Related Comparative Guides

Comparative Guide

Insurance & Reinsurance

See more popular content from

Insurance

Strait Of Hormuz: Current Situation And Implications For Marine Insurance

The Strait of Hormuz has become a critical flashpoint for global maritime trade following the outbreak of hostilities involving Iran in 2026. With approximately one-fifth of global oil trade passing through this vital waterway, commercial shipping now operates under unprecedented security threats including missile attacks, drone strikes, and mine risks. Marine insurance premiums have skyrocketed from 0.125% to as high as 10% of vessel values, fundamentally altering the economics of Gulf trade and forcing th

United KingdomInsurance

Lester Aldridge LLP

A Tailored Regime: PRA And FCA Consult On UK Insurance Captives

The UK's Financial Conduct Authority and Prudential Regulation Authority have unveiled Stage 1 of a new tailored regulatory framework for insurance captives, designed to be proportionate, competitive, and reflective of captives' lower risk profiles. With consultations closing in October 2026 and implementation targeted for mid-2027, the regime promises streamlined authorisation, bespoke capital requirements, and simplified supervision—but will it be enough to compete with established offshore jurisdic

United KingdomInsurance

Established, Not Alleged: Commercial Court Confirms D&O Policyholders' Right To Defence Costs

Allegations of fraud against directors or officers frequently give rise to coverage issues under D&O insurance, particularly if insurers perceive that if the fraud allegations were true...

United KingdomInsurance

Herbert Smith Freehills Kramer LLP

Insuring Offshore Wind Growth Amid Rising Risks, Defects And Claims

The offshore wind industry faces unprecedented insurance challenges as it scales rapidly to meet global energy demands. With subsea cable failures, design defects, and evolving technologies creating complex coverage issues, insurers and wind farm operators must navigate LEG exclusions, series loss clauses, and contingent business interruption claims. How can the insurance market balance risk limitation with the viability of this critical renewable energy sector?

United KingdomInsurance

The Growing Cost Of Motor Claims – Insights From ABI Data

UK motor insurers paid a record £3.2 billion in claims during Q2 2026, marking a 7% year-on-year increase as average claims reached £4,900. While Advanced Driver Assistance Systems reduce collision frequency, sophisticated vehicle technology is driving repair costs significantly higher, creating profitability challenges for insurers navigating the transition to autonomous vehicles.

United KingdomInsurance

Six Minutes From Crisis To Covered: How Artificial Intelligence Is Transforming Pet Insurance Claims

Swedish Insurtech Lassie has launched in the UK with a revolutionary pet insurance model that combines AI-powered claims processing, gamified health rewards, and personalized pet care guidance through a single app. The platform promises to settle claims in just six minutes and offers a prevention-first approach that could fundamentally reshape the traditional pet insurance market. With over 20 million UK pets currently uninsured, Lassie's innovative approach may finally bridge the gap between pet owners and

United KingdomInsurance

Browne Jacobson LLP

Can Insurers Avoid Covering Defence Costs Under A D&O Policy Before Fraud Is Proved?

In a landmark ruling, the English Commercial Court has determined that insurers must continue advancing defence costs under D&O policies even when fraud allegations are pending, provided a non-avoidance clause is present. The decision addresses whether such clauses violate public policy and establishes that insurers cannot withhold coverage until fraud is either admitted or proven by final court decision.

United KingdomInsurance

Mishcon de Reya LLP

Warranty, Service Contract Or Insurance? Navigating The Regulatory Landscape For Product Protection Arrangements

Manufacturers and retailers use warranties to build consumer trust, but determining whether these product protection arrangements constitute regulated insurance contracts is not always straightforward. The Financial Conduct Authority has identified instances where warranty products may have been misclassified, raising important questions about regulatory compliance for businesses designing, distributing, or acquiring warranty products.

United KingdomInsurance

FCA Pure Protection Market Study: Fair Value Findings - What Firms Need To Do

The FCA has published its final report on the distribution of pure protection products, examining firms' fair value assessments under the Consumer Duty and PROD 4. The regulator found significant gaps in how insurers and intermediaries evidence their fair value conclusions, particularly around commission structures and guaranteed acceptance over 50s products, signaling that supervisory action will follow for firms with weak frameworks.

United KingdomInsurance

Disclosure Risks For Insurers As A Non-party To English Arbitration Or Court Proceedings

When can insurers' claims handlers' correspondence and documents be disclosed in English arbitration or court proceedings? This article examines the boundaries of Legal Professional Privilege and explores the circumstances under which materials produced by P&I Club and H&M claims handlers may be subject to disclosure obligations, even when the insurer is not a party to the proceedings.

United KingdomInsurance