Coverage for deliberate acts

The Court of Appeal has, in KR v Royal & Sun Alliance plc [2006] EWCA Civ 1454, reversed the ruling of Simon J ( [2006] Lloyd’s Rep IR 327) and has ruled that an assured company was unable to recover under a liability policy for losses suffered as a result of deliberate acts on the part of its controller. The appeal by the insurers was upheld on the basis that the acts of the controller could be imputed to the assured company. The first instance decision was considered in Insurance Law Monthly ( Volume 18: July (pp9–10)).