Covid-19 Pandemic: Steps to assist Brokers mitigate the risk of professional negligence claims against them

The session will look at the steps that could help mitigate or reduce the prospect of professional negligence claims successfully being made against brokers as a result of the Coronavirus Pandemic. These are steps that could help mitigate brokers’ exposure to allegations including that: (a) the policyholder does not have the cover they required or thought they had; or (b) there has been a failure by a broker that has compromised the cover that would have been in place but for that failure.

A natural consequence of this objective being achieved could, in a number of cases, although not all of them, be to reduce the scope for claims against insurers. That is because the liability of the insurer and the broker is dependent upon the answer to the same question – what cover does a policy in fact provide? The session will also discuss the outcome of the judgment of the FCA test case on business interruption  and how this could have a persuasive effect on the Irish test case scheduled for hearing in the Commercial Court this October.

Learning Objectives

The overarching learning objectives are:

• Exploring the current context in which the insurance industry is operating and understanding the positions of the CBI, FCA, Lloyds and the Association of British Insurers and exploring the outcome of the judgment in the FCA test case.
• Understanding the extent of Policy Coverage through a discussion of case law relating to policy coverage matters, including the result of the FCA test case in the UK.
• Considering brokers’ obligations pre and post policy inception by reference to cases decided by the courts, whilst looking at causation / loss issues.
• Understanding the practical steps that could be taken by Insurers and MGAs to help their brokers comply with their obligations pre and post policy inception, including in relation to how they respond to claims.

Caytons opened their Dublin office in 2013, to provide specialist legal services in insurance, construction and commercial litigation to the Irish market.  Caytons have an associated office in the City of London, providing expert legal advice to the London insurance market and private clients.

Mary Smith practices in the UK and Ireland, specialising in construction and professional liability, acting for all stakeholders including private clients, professionals, Irish and UK insurers and Lloyd’s syndicates. Recommended in Legal 500 EMEA 2019 for Construction, she regularly acts for construction professionals and other professions such as financial advisors, brokers and their insurers in a broad range of claims. A Certified Insurance Practitioner (CIP), Mary has been a member of the Council of the Insurance Institute of Dublin since 2016.

Robert Lloyd has more than twenty-five years of experience and practices in the UK and Ireland. He has expertise in dispute resolution relating to insurance, construction, professional negligence, professional conduct, statutory liabilities, reinsurance, shipping and legal costs. He is qualified in both Ireland and the UK and has extensive experience in defending insurance brokers including in Ireland.

Sam Moore is a UK qualified solicitor, specialising in professional indemnity claims and policy coverage disputes.  His practice is focused on a diverse range of professionals including architects, engineers, insurance brokers and solicitors, as well as building contractors.