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ARTICLE · 17 SEPTEMBER 2026

Insurers Cannot Withhold Defence Costs From Petrofac Defendants Under D&O Policy

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In a landmark High Court ruling, two former Petrofac directors facing bribery charges have secured the right to continue receiving defence cost coverage from their insurers under a Directors and Officers policy. The decision addresses fundamental questions about when insurers can avoid policies based on alleged fraud and establishes important precedents for executive protection during criminal proceedings.

United KingdomInsurance
Lorna Emson
Lorna Emson
Alexandra Abelidis
Alexandra Abelidis

In a closely followed decision with wide-ranging implications for directors and senior executives, the High Court has found that two former Petrofac directors accused of bribery can continue to recover their defence costs from insurers. 

Insurers must pay Petrofac defence costs under Directors and Officers (D&O) policy 

Following an expedited day-long hearing at the High Court on 9 September 2026, Mr Justice Jacobs has ordered that nine insurance companies must continue to cover the defence costs of two former Petrofac directors. 

The Petrofac defendants face bribery charges for alleged corrupt payments made in the UAE between 2012 and 2018 that helped Petrofac secure high-value oilfield service contracts. The executives’ four-month trial is set to commence in November 2026. Both defendants’ defence costs have so far been covered by Petrofac’s D&O policy, as is common practice in criminal defence for board-level executives. Nine Lloyd’s insurers sought to challenge this status quo,

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