Newcastle businessman Andrew Poole was one of four men found by the ICAC to have acted corruptly over the grant of a lucrative Hunter Valley coal licence.

He racked up a legal bill of more than $650,000 at the ICAC last year, but insurer Chubb Australia declined to cover the expenses. He took Chubb to the Supreme Court to recover the fees and Justice James Stevenson this month ruled in his favour.

Chubb had claimed it should not have to foot the bill because Mr Poole, a former director of private company Doyles Creek Mining, failed to disclose crucial information when entering the contract.

This included an alleged "close personal and professional relationship" between former Labor mining minister Ian Macdonald, who granted the coal licence, and former union boss John Maitland, who was then the chairman of Doyles Creek.

The ICAC found Mr Macdonald was motivated to grant the licence – without a tender and against departmental advice – because Mr Maitland was a "mate".

Mr Poole told the court that Mr Macdonald and Mr Maitland "virtually didn't know each other, as I understand it", a suggestion Justice Stevenson said was "understating matters somewhat".

But the judge added he had been provided with "no direct evidence" of any relationship and there was no basis to conclude Mr Poole knew of any connection that would "cause him to give credence to suggestions" that the licence was granted as a favour.

Justice Stevenson said he was not persuaded Mr Poole knew there was "emerging public controversy" about the licence which would have obliged him to alert Chubb to the possibility of an ICAC inquiry.

The decision raises questions about the corruption finding against Mr Poole. The ICAC found he acted corruptly by agreeing to "false and misleading" statements being made to the government to get the licence.

Chubb argued Mr Poole was prepared to engage in "extremely dishonest conduct" to obtain a "valuable state asset". But Justice Stevenson said he was not persuaded Mr Poole was aware that any statements were false and misleading.

"Although I have found some aspects of Mr Poole's evidence troubling, overall, I am not satisfied that I should reject his evidence on this critical matter," he said.

"It was not for Mr Poole to prove he believed the [statements] to be true. It was for Chubb to prove that he did not. Chubb has failed to so persuade me."

The judge proposed to order that Chubb pay all of Mr Poole's legal fees, plus interest and costs. But he will first hear submissions about whether the reasonableness of the fees should be assessed.

Mr Poole's business associate, Craig Ransley, is expected to rely on the same insurance policy.

Liberal Senator Arthur Sinodinos and Obeid associate Nick Di Girolamo, who were involved in a separate ICAC inquiry that has not yet delivered any findings, may also rely on similar policies.