Insurers' liability for uninsured third party costs – "intermeddling" or not?

The Supreme Court yesterday handed down an insurer-friendly judgment in the case of Travelers Insurance Company Ltd v XYS overturning earlier decisions by the High Court and the Court of Appeal which held insurers liable for third party costs. It held that a liability insurer is not obliged to pay a third party’s costs in respect of uninsured claims against an insolvent insured.

Joe Eizenberg and Sophie Bryant of our Bristol office discuss this landslide decision, and the impact it will have on third party costs in the future.