Clifford Chance
Clifford Chance Client Briefing: When the drugs don't work - 7 March 2014
6 March 2014
The recent case of AstraZeneca Insurance Co Ltd v XL Insurance (Bermuda) Ltd and another [2013] EWCA Civ 1660 exposes the risks that policyholders face when seeking coverage for costs incurred in the course of settling and defending claims brought against them.
Where an insured has purchased insurance to protect it from claims made against it by third parties, as well as to cover the costs of defending such claims, the question will arise of whether such insurance will respond if the insured settles the claim before the matter reaches trial and before liability is decided by way of a court judgment. The AstraZeneca case addresses this specific question, as further described below.
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