Watching the words

When a major insurance claim arises it is often the case that the wording has not yet been prepared or agreed. And if it has been agreed, it may contain clauses that are ambiguous, inappropriate or even unintelligible. Michael Dobias and Robert Viney , partners in the Reinsurance & Professional Indemnity Group at City law firm Davies Arnold Cooper, argue that both scenarios create uncertainties regarding the terms of the contract and that this doubt adds significantly to insurers’ costs.