Professional Indemnity

An insurance broker has a duty to obtain formal quotes and implement cover amendments in a timely manner when a client has identified the need for increased protection, particularly when circumstances create urgency.

An insurance broker has a duty to obtain formal quotes for policy amendments when requested by a client, even if the client has not confirmed all details, and must provide those quotes promptly to enable the client to effect cover before a

A legal expenses insurer may rely on prospects assessments carried out by paralegals supervised by a suitably qualified lawyer with relevant experience in the area of law being considered.

Legal expenses insurers must deal with claims promptly and fairly, and are entitled to decline cover based on legal advice that a claim lacks reasonable prospects of success.

A liquidation condition in an insurance policy applies only to formal insolvency processes, not to voluntary solvent closures of a business.

An insurer's initial prospects assessment cost should not be deducted from a policy indemnity limit as it is a claims administration cost necessary to assess cover eligibility, not a legal expense chargeable to the policyholder.

An insurer may reasonably limit the hourly rate it will pay for a non-panel solicitor if this is clearly stated in the policy terms and alternative suitable options are provided.

An insurance broker is not required to anticipate unprecedented pandemic risks when recommending disease cover that was standard practice for foreseeable diseases like Legionnaires' disease.

An insurer is not liable for losses caused by a third party's (legal expenses insurer's) conduct, even if the selling insurer made an administrative error in naming the policyholder.

An insurer may fairly rely on a clear and unambiguous exclusion clause in a commercial legal expenses insurance policy that excludes cover for disputes arising from agreements entered into before the policy started if the date of occurrence

An insurance broker is not responsible for an underwriter's subsequent administrative failures in locating policyholder details, provided the policy was properly arranged.

An insurance broker selling an advised policy must assess the customer's demands and needs and ensure the recommended policy is suitable, with significant exclusions clearly communicated.

Legal expenses insurance claims are excluded where the insured incident occurred before the policy start date.

A breach of a condition precedent to liability in an insurance policy permits the insurer to decline cover regardless of whether the breach directly caused the loss.