Indemnity & Policies

Client:  Underwriters

Issue / Claim: An £18m claim arose out of a construction project. There was a considerable distance between the parties in respect of the meaning and application of the main insuring clauses and the application of exclusions and extensions to the policy.

Weightmans’ Investigation and Action: We attempted to persuade the policy holder to present a transparent claim in accordance with our interpretation of the policy wording, but they would not agree. The case could not be resolved by negotiation, so we activated the “QC “clause to settle the dispute by means of arbitration.

Result: At arbitration, the claim was eventually settled for less than £2m, including costs, thereby resolving the case in the most cost effective manner available.