Joinder of insurers to proceedings between insured and brokers

Lawyers Anthony Menzies

Dunlop Haywards (DHL) Ltd & Ors v Erinaceous Insurance Services Ltd & Ors
Court of Appeal, 28 April 2009

The situation is not at all uncommon. An insured's policy claim is rejected, on the grounds that it falls outside the coverage terms arranged by the broker, in response to which the insured sues the broker for having failed to procure insurance on suitable terms. Frequently the broker will respond in its defence that the policy claim is in fact recoverable under the relevant terms, and that insurers' declinature is itself invalid. The result is that the insured may find himself litigating the merits of the policy claim with his own broker.

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