Liability insurance: scope of cover

The facts of Leggett and Others v American International Group UK Ltd [2025] EWHC 278 (Comm); [2025] Lloyd's Rep IR 421 are somewhat unusual. The questions were whether insurers were bound by a judgment against their assured and, if so, whether the policy covered the liabilities set out in the judgment.

As noted in the commentary below, the binding effect of a judgment against the assured prior to the assured's insolvency may well be different under the Third Parties (Rights Against Insurers) Act 2010 than was the case under the predecessor 1930 Act. However, that would not have affected the outcome because the key issue was the scope of policy coverage.