A design and refurbishment company takes out professional indemnity insurance with an insurer. A client of the company seeks compensation for alleged negligence of the company. After the policy is paid out by the insurer but before the company compensates the client, the company becomes insolvent. Are the policy proceeds held on trust for the client? In Desai v Wood,1 the Court of Appeal held that the answer is no. The Court of Appeal’s unanimous judgment, handed down by Zacaroli LJ, rejected both the argument