Reinsurance: allocation of claims

In Teal Assurance Co Ltd v W R Berkley Insurance (Europe) Ltd [2013] UKSC 57 the Supreme Court considered a dispute relating to professional indemnity insurance where a firm of architects and engineers was insured by a “tower” of insurance contracts.

At issue was whether an insured and/or a cedant might be entitled to determine which claims would be met at the lower levels of the tower and those which would be met by a “top and drop” policy at the top layer of the tower. The decision is discussed by David Turner QC and Pippa Manby of 4 New Square.