Under a liability insurance policy requiring the insured to become 'legally liable to pay' compensation, the insured's liability must be established by judgment, arbitral award, or agreement of compromise — it cannot be proved for the first time in proceedings against the insurer. A cause of action under an insurance policy indemnifying costs incurred accrues when the costs are incurred, not when the insurer refuses indemnity. A reasonable precautions clause expressed as entitling the insurer to 'reduce, or avoid paying, any claims' is a particular exception to the insurer's liability (not a condition precedent), and the onus of proving breach lies on the insurer.
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