Liability insurance: solicitors’ liability cover

In Doorway Capital Ltd v American International Group UK Ltd [2022] EWHC 182 (Comm) the question was whether a solicitors’ liability policy covered default by the insured solicitor on a facility whereby funds were provided to the practice in return for the discounted sale of receivables. Butcher J struck out a claim against the insurers as having no reasonable prospect of success. The policy was designed to cover liability arising out of the practice and not liability for trading debts.

Doorway : the facts