Professional indemnity insurance: mitigation costs

In Standard Life Assurance Ltd v ACE European Group & Ors [2012] EWCA Civ 1713, the Court of Appeal has rejected the insurers’ argument that there should be an apportionment between insured and uninsured interests under a “Mitigation Costs” clause of a professional indemnity policy.

The Court of Appeal, upholding the first instance decision of Eder J, discussed in the October 2012 issue of Insurance Law Monthly , found that there was no general principle of apportionment of mitigation costs outside the field of marine insurance. The case is discussed by Clare Dixon of 4 New Square.