Brokers PI: Post-Placement Duties

Author:Mr Stephen Netherway
Profession:CMS Cameron McKenna LLP
 
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Brokers JLT have successfully resisted an appeal by HIH against a judgment of Langley J last year with the result that they are not liable to insurers for losses suffered. In doing so, the Court of Appeal also upheld the trial judge's finding that, further to the facts of this case, brokers potentially had a continuing duty to advise their clients of relevant matters in respect of the contracts they had placed. Whilst this finding is case/fact specific, brokers should continue to be aware that there is the potential for the law to impose upon them obligations in respect of post-placement issues above and beyond the well-established situations - such as presenting claims and dealing with endorsements to cover - where brokers have been held to owe duties to their clients post placement of a risk. Brokers should be aware that they may be criticised for acting as a mere post box between insured and insurers where information is, or ought to be thought to be, a matter of potential concern on (at least) coverage issues. This case also indicates that the Courts will consider issues of contributory negligence on the part of underwriters. Further reading: HIH Casualty & General Insurance Limited v. JLT Risk Solutions Limited [2007] EWCA Civ 0710. To view the article in full, please see below:Full ArticleBrokers JLT have successfully resisted an appeal by HIH against a judgment of Langley J last year with the result that they are not liable to insurers for losses suffered. In doing so, the Court of Appeal also upheld the trial judge's finding that, further to the facts of this case, brokers potentially had a continuing duty to advise their clients of relevant matters in respect of the contracts they had placed.Whilst this finding is case/fact specific, brokers should continue to be aware that there is the potential for the law to impose upon them obligations in respect of post-placement issues above and beyond the well-established situations - such as presenting claims and dealing with endorsements to cover - where brokers have been held to owe duties to their clients post placement of a risk. Brokers should be aware that they may be criticised for acting as a mere post box between insured and insurers where information is, or ought to be thought to be, a matter of potential concern on (at least) coverage issues. This case also indicates that the Courts will consider issues of contributory negligence on the part of underwriters. The case was an appeal, following a...

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