We have significant experience in dealing with claims against both Lloyd’s and non-Lloyd’s brokers. 

We have advised brokers and their insurers on a wide range of issues including the scope of the duty of care owed to their clients and to insurers, complicated causation and loss issues, the part played by other individuals involved in the placing and/or claims process, and the application of binding authorities.

Claims typically involve allegations of failures by brokers to advise on the consequences of under-insurance, draw important terms to their clients’ attention, arrange the correct type of cover, give proper advice as to appropriate sums insured, including complex issues regarding business interruption losses, and to effect insurance.

Examples of cases on which we have acted include:

• advising on a £10m claim against a broker which raised issues of scope of duty, the limit of the different advisors’ retainers, and contributory negligence.  As part of the defence, it was necessary to obtain extensive expert evidence in relation to several different types of alleged loss including business interruption losses;
• acting for a Lloyd’s broker in defence of a claim for negligent breach of duty of care allegedly owed to Underwriters. The case concerned losses on a binding authority in excess of £4m. The key issue is whether duties of care could be implied in circumstances where the broker was said to have a role in negotiating and drafting the binding authority;
• acting for a Lloyd’s broker in defence of a claim in which it is alleged that the broker was under a duty of care to explain unusual terms in a policy to the Underwriter before the risk was written; and 
• advising a broker facing a possible claim in relation to the placing of an Advanced Charterers Profit risk.

We have also advised insurers on the application of their policy terms and conditions in relation to the claims brought against their broker insureds, including in circumstances in which it is alleged that the insured and/or an employee of the insured has acted dishonestly.

We regularly contribute to industry publications and conduct seminars on topics concerning brokers and their insurers. We would be happy to discuss giving bespoke seminars on topics of interest to our clients.

For more information and/or advice, please contact:

Andrew Blair
James Cooper
Gaby Kaiser
Joanne Whyld
Patricia Orr