Liability insurance

Brokers’ obligation to notify claims

It is established law that the obligations of a broker towards his client, the assured, do not come to an end when the risk is successfully placed. Those duties extend throughout the currency of the policy and into the claims process. If, therefore, the assured suffers a loss and the assured looks to the broker to notify the insurers of the loss in accordance with the claims provisions of the policy, then the broker must exercise reasonable care when notifying. The point is illustrated by Alexander Forbes Europe Ltd v SBJ Ltd [2003] Lloyd’s Rep IR 428 , a decision of Deputy High Court Judge David Mackie QC. The case is relatively old, but it is of some interest and has escaped previous mention in Insurance Law Monthly.