Credit insurance

Scope of cover and utmost good faith

There have been very few decisions on credit insurance, and that of Colman J in Moore Large & Co Ltd v Hermes Credit & Guarantee plc [2003] EWHC 26, forthcoming in [2003] Lloyd’s Rep IR, is of interest in two respects. First, it analyses the scope of a credit insurer’s liability. Second, important questions on waiver of disclosure and waiver of the right to avoid were raised by the facts. Lawyers advising insurers as to the correct way to handle a claim where there is a potential utmost good faith defence in existence should take particular note of the decision.