Professional indemnity insurance: excess layers

Liberty Mutual Insurance Co v Kellogg Brown and Root Pty Ltd [2017] NSWSC 1519, a decision of Stevenson J in the New South Wales Supreme Court, concerned the relationship between a professional indemnity policy obtained by the defendants and an excess layer long-term project policy to which the defendants were named assureds.

The question was whether the project policy operated as an excess cover when the original professional indemnity policy expired and was replaced by a new policy.