Insured Entitled To Indemnity Under Insurance Policy As And When Settlement Monies Were Drawn Down From Escrow Account

A loss was suffered for the purpose of entitlement to indemnity under a Top and Drop insurance policy when settlement monies were drawn down from (rather than paid into) an escrow account.

Teal Assurance Co Ltd v (1) W R Berkley Insurance Europe Ltd (2) Aspen Insurance UK Ltd [2015] EWHC 1000 (Comm) Mr Justice Eder, 25 April 2015

Summary

The court was asked to decide a preliminary issue as to whether liability to pay settlement monies arose when monies were paid into an escrow account, or when those monies were to be drawn down.

Background

Teal is a captive insurance company, incorporated in the Cayman Islands. It insured Black and Veatch Corporation ("BVC") and the wider BVC group which operates a global engineering and...