Duties in respect of coverage

In Dunlop Haywards (DHL) Ltd v Barbon Insurance Group Ltd [2010] Lloyd’s Rep IR 149 Hamblen J discussed in detail the duties owed by a producing broker to the assured, and the duties owed by a placing broker to the producing broker. The case shows that a producing broker is responsible to the assured for his own defaults and those of the placing broker, and that the producing broker can recover from the placing broker damages representing the contribution of the placing broker to the assured’s loss.

Dunlop Haywards: the facts

DHL carried on business as property consultants, that business subsequently being acquired by DH. The companies were members of the Erinaceous Group. In March-April 2006 DHL and DH received a number of claims from lenders based on the provision of negligent or fraudulent valuation reports carried out by M, a director of DHL and later DH.