The proof of the pudding is in the eating

Insureds can have their cake but only if they eat it too

In Great Lakes Reinsurance (UK) SE v Western Trading Ltd1, the Court of Appeal (the CA) has provided clarification as to the circumstances in which an insured is entitled to an indemnity on a reinstatement basis where the insured property is destroyed. The decision affords protection to insurers in circumstances where there is no real prospect that the indemnity will be used for reinstatement purposes.