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ARTICLE · 17 NOVEMBER 2011

Third Party Claim Against Insurer

In Omega Proteins Ltd v Aspen Insurance UK Ltd [2010] EWHC 2280, 10 September 2010, is a case which explores what happens when a policy of liability insurance contains an exclusion in respect of liability arising under a contract, "unless such liability would have attached in the absence of that contract".

United KingdomInsurance
Camilla Macpherson
Camilla Macpherson

In Omega Proteins Ltd v Aspen Insurance UK Ltd [2010] EWHC 2280, 10 September 2010, is a case which explores what happens when a policy of liability insurance contains an exclusion in respect of liability arising under a contract, "unless such liability would have attached in the absence of that contract".

If the insured under the policy has been held liable in underlying litigation specifically for breach of contract (and breach of contract alone), does that mean it cannot recover under the policy from its insurers?

Omega Proteins Ltd (Omega) processed meat by-products from animal carcasses. These by-products were then sold on, for example to pet food manufacturers. Omega inadvertently processed and sold certain products that were in fact fit only for disposal. Omega was sued by the end recipients of these products, and joined its supplier, Northern Counties Meat Ltd (Northern Counties) to the litigation.

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