Notification of circumstances under claims made policies

Claims made professional indemnity policies confer upon the assured the right (and sometimes the obligation) to notify to the insurers circumstances that may give rise to a claim, in which case a post-policy claim relating to those circumstances is covered by the policy. In Kajima UK Engineering Ltd v Underwriter Insurance Co Ltd [2008] EWHC 83 (TCC), Mr Justice Akenhead considered the vexed and common problem of determining whether the claim actually made against the assured arose from the earlier notified circumstances.

Kajima: the background

In October 1999, Kajima was appointed by JRF to act as main contractor to build a block of 46 flats in Leeds. The development was a novel one, and consisted of the installation of what was described by the judge as ‘a stacked pre-constructed pod and flat pack construction’. Each flat was comprised of a pod and flat packs: each pod resembled a container and provided the basic living accommodation. The flat packs were mainly of wooden construction and included walls, floors and ceilings that were to be assembled on site. Underlying foundations were constructed and the pods were placed by crane on them and affixed. There were five storeys of pods. The roof was attached to the top of the construction and sloped from front to back. There were various walkways in the structure. The work was carried out between September 1999 and June 2000, with a certificate of practical completion being issued on 15 June 2000.