Professional indemnity insurance: recoverability of fees

In Royal & Sun Alliance Insurance Ltd and Others v Tughans [2022] EWHC 2589 (Comm) a challenge to the award of an arbitrator was brought under each of three grounds in the Arbitration Act 1996, namely, want of jurisdiction (section 67), serious irregularity (section 68) and error of law (section 69). The case raised important issues on the interpretation of each of those three sections as well as discussing to date unresolved issues as to the scope of a professional indemnity policy where the claim against the assured is based upon fees earned by it. The arbitration issues are discussed in more detail in our sister publication Arbitration Law Monthly. The focus here is on the points relevant to liability insurance.

Tughans : the facts