The obligation to cooperate

Most forms of insurance typically impose two claims obligations upon the assured. The first is to notify the insurers of any loss or circumstances which may give rise to a loss. The second, following notification, is to cooperate with the insurers either in a general way or by specified means. The former normally imposes time limits, whereas time for compliance with the latter obligation is left open. In Shinedean Ltd v Alldown Demolition London Ltd [2005] EWHC 2319 (TCC) (forthcoming in [2006] Lloyd’s Rep IR) HHJ Richard Havery QC discussed the timing of an obligation to cooperate where no time limits are imposed. The outcome may be regarded as a surprising one for insurers because it indicates that even a flagrant failure to provide information is only fatal to a claim if the insurers have been prejudiced by the delay. It would seem to follow that in the absence of compelling evidence that the insurers have lost a possible subrogation claim, or have been deprived of the right to defend under a liability policy, failure to cooperate is not a breach as long as there is ultimate compliance.