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Insurance Law Monthly

Liability of insurers under design and build contracts

In Encin Remediation Ltd v Canopius Managing Agents Ltd [2007] EWHC 916 (Comm) Cresswell J was required to construe the terms of a professional indemnity policy issued to a company which carried on a civil and environmental engineering business. The policy covered professional liability risks but not supply and manufacturing risks. The question for Cresswell J was whether the insurers were liable for professional liability risks which arose out of a combined design and build contract in circumstances where the insurers were not liable for the claims arising out of supply and build aspects of that contract.

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