I'm not sure why everyone is so keen to insist that insurers won't be involved here.
Exclusions b), and e), wouldn't apply because neither were the case at the time the Tweet was made. Hopkins didn't know the statement was false because she thought she was responding to Laurie Penny. Similarly, she didn't bear Munroe any previous ill-will because she didn't know who she was ... she thought she was Laurie Penny.
Conditions 1), and 3), refer to legal advice that
was sought.
Reading more about this this morning you can see how this has come about.
The first Tweet was posted at 7.20am on 18th May. This was the one mistakenly accusing Munroe of defacing war memorilas.
Munroe responded three times at 7.33am ('this is wrong'), 7.46am ('please retract or i'll sue'), and 8.14am. The 8.14am Tweet was the offer to settle for £5k to charity.
Hopkins deleted the Tweet at 9.47am, but instead of retracting or apologising she called Munroe "social anthrax"
Both lawyers thought they could win this. We know this because they were both acting on "no win no fee". What this rested on was whether or not "serious harm" had been caused to Munroe's reputation. Jonathon Price (for Hopkins) argued that the Tweet had been deleted quickly and was only visible for under 2 hours in the early morning. Also that Hopkins had issued a correction, albeit not until June 2nd after solicitors had got involved.
So it was "serious harm" that was pivotal and it was argued that this didn't occur. This wasn't quite the slam-dunk for Munroe as people seem to think. Price, along with others, genuinely thought he'd win, and this case has lowered the bar regarding what constitutes "serious harm" in libel cases.
Insurance may or may not come into play here but nothing posted so far precludes it.