Liability insurance: payment of costs

The decision of Jagot J in the Australian Federal Court in FKP Commercial Developments Pty Ltd v Zurich Australian Insurance Ltd [2022] FCA 862 addressed the relationship between a mechanism for the allocation of any claims against the assured between insured and uninsured loss and the provisions of the policy for the advance payment of defence costs. There was a further, and ultimately determinative, question of whether the claims against the assured were based on the provision of professional services so as to fall within the scope of cover.

FKP : the facts