Duties owed during the currency of the policy

It is settled law that the duties of a broker do not cease when the risk is placed, but continue throughout the currency of the policy up to and including the claims stage. In HIH Casualty and General Insurance Ltd v JLT Risk Solutions Ltd [2006] EWHC 485 (Comm), a sequel to no less than three earlier decisions on the recoverability of claims under film financing insurances and reinsurances, Langley J has confirmed that brokers owe a duty to a reinsured to inform him of possible defences under the direct policy and under the reinsurance, whether or not the reinsured has specifically requested the broker to provide such information. On the facts of the present case, however, the Court ruled that the brokers’ failure to satisfy their duty had not been the cause of the reinsured’s loss where the reinsured chose to pay under the direct policy, even though reinsurers had indicated that they would not provide an indemnity.