Insurers have come out ahead of World Trade Centre leaseholder Larry Silverstein after their fierce court battle over the New York site.

A US District Court has ruled that Zurich American, which provided primary cover for the famous landmark before the September 11 terrorist attacks in 2001, should not have to pay legal defence costs.

Developer Larry Silverstein, who leases the site from the New York Port Authority, defended many claims for wrongful death after the “Twin Towers” collapse.

However, the court ruled that his policies with Zurich American and other insurers did not cover such fees. Judge Alvin Hellerstein found each of the policies had specifically excluded cover for legal defence costs.

Mr Silverstein’s lawyers argued that the language was ambiguous, and they plan to appeal against the decision. Either way, the developer says the case will not interfere with the construction of Freedom Tower on the site.