Negligence award sounds warning note for brokers
The recent negligence case of Arbory Group Ltd v West Craven Insurance Services may have very expensive ramifications for brokers, and their E&O insurers, who place business interruption (BI) cover, said lawyers at national commercial law firm, Beachcroft LLP.
“Contrary to the established law that when an insured brings a negligence claim against its insurance brokers, damages are limited by reference to the amount that would have been payable under the policy, the judge in this case awarded a sum for loss of profits, in addition to that which would have been paid out under the BI cover,” explained Marcus Campbell, a professional risks partner at Beachcroft LLP.
In Arbory, the claimant company did not understand the meaning, in an insurance context, of
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