[2015] UKSC 33
UKSC 2013/0057
Zurich Insurance PLC UK Branch (Appellant) v International Energy Group Limited (Respondent)
On appeal from the Court of Appeal (Civil Division) (England and Wales)
The issue in this case is whether, under an employers’ liability insurance policy, an insured company is entitled to an indemnity from an insurer for the entirety of its outlay in respect of a claim brought against it for mesothelioma by an employee, or only a proportion of its outlay based on the period for which the insurer provided cover.
The Supreme Court unanimously holds that the common law rule of proportionate recovery established in Barker [2006] UKHL 20 continues to apply in Guernsey; it accordingly allows Zurich’s appeal in respect of compensation; but it dismisses the appeal in relation to defence costs. The judge’s order is therefore restored.
