CROWSON V HSBC INSURANCE BROKERS

Chancery Division, Master Bragge, 26 January 2010

Insurance (directors' and officers') - Brokers instructed by company to place insurance - Brokers failing to do so - Whether duty of care owed to company's director - Contracts (Rights of Third Parties) Act 1999

The claimant was the managing director of a company, HBL. The defendant brokers were instructed by HBL to effect insurance policies to cover risks under earlier policies placed by different brokers. The required cover included a directors' and officers' liability policy. The defendants failed to put D&O cover into place. The claimant, a director, argued that the defendants owed him a duty of care to follow the instructions given by the company. The brokers sought to have the claim struck out. Master Bragge held that the claim should be allowed to proceed to trial.