Warranty and indemnity (W&I) claims continued to be a major area of contention throughout 2025. Stewarts saw insurers adopting increasingly robust positions, with many disputes turning on recurring coverage issues. These challenges are heightened by the limited public case law on W&I disputes, which is unsurprising given that many matters settle pre‑proceedings and those that progress are typically resolved through arbitration.

For policyholders, the environment is becoming more difficult to navigate, with a global trend of decisions favouring insurers. The Policyholder Review 2026 examines this shift in detail, including an analysis of the recent decision of the Supreme Court of New South Wales, Australia, in DTZ Worldwide Limited v AIG Australia Limited [2025] NSWSC 12.

In our warranty and indemnity chapter, partner James Breese and associate Arjun Dhar look at recent trends within W&I.

Case law – insurance

In the New South Wales Supreme Court decision, the plaintiff, DTZ, agreed to buy a group of companies from UGL, the seller. The dispute centred on one company, Premas, which had a facilities management contract (the “FM Contract”) with the Singapore Sports Hub. The FM Contract proved to be loss making, and DTZ claimed losses of AU$234 million plus interest for breaches of warranties in the sale.

Case law – non‑insurance

Inspired Education Online Ltd v Tom Crombie [2025] EWHC 1236 (Ch)

Last year’s Policyholder Review spotlighted the Scottish case of Drax Smart Generation Holdco Ltd v Scottish Power Retail Holdings Ltd [2024] EWCA Civ 477, which highlighted the importance of time limits and notification provisions in sale and purchase agreements and other key contractual documents. This case serves as a reminder of the same principles.

W&I claims study 2025

Alex Harding, Head of Claims at Hemsley Wynne Furlonge Partners Limited (HWF), provides an overview of the W&I market from a broker’s perspective.

HWF is the only insurance broker to canvass the entire W&I insurance market to give clients an authoritative picture of W&I claims. Its data covers multiple European insurers with appetites across all areas of the transactional risk market, offering a comprehensive overview of W&I claims trends. Its 2025 claims study covers a nine‑year look‑back, drawing on data from 24 insurers and 18,563 policies.