HFW secures landmark DIFC Court result in first broker negligence judgment

Global law firm HFW has secured a landmark judgment for Qatar General Insurance & Reinsurance Company QSPC (QGIRCO), marking the first DIFC Court judgment to consider an insurance broker’s liability for negligence.

In Qatar General Insurance & Reinsurance Company QSPC v Emergent Risk Solutions Ltd, the DIFC Court of First Instance found in favour of QGIRCO, holding that the broker breached its duties by failing to procure retrocession cover as instructed and failing to notify its client that the coverage was not in place on the agreed terms.

The HFW team advising QGIRO in this case was led by Partner Sam Wakerley.

The judgment, handed down in June 2026, is the first decision of its kind in the DIFC and provides important judicial guidance on the standard of care expected of insurance and reinsurance brokers operating in the region.

The Court confirmed that brokers owe a duty to exercise the skill and care of a reasonably competent insurance broker, including ensuring that cover is placed in accordance with instructions and keeping clients properly informed where coverage cannot be obtained on the required terms. The Court further held that the broker’s failures caused QGIRCO to lose the benefit of retrocession protection that would otherwise have responded to significant underlying losses.

The decision is expected to be of particular significance to insurers, reinsurers and brokers across the Middle East, providing greater clarity on brokers’ obligations when arranging complex insurance and reinsurance programmes through the DIFC.

The judgment analyses the DIFC’s approach to damages and “loss of a chance” claims, confirming the circumstances in which parties may recover compensation where a broker’s negligence has deprived them of the opportunity to benefit from insurance cover that would likely have responded to a claim.

Sam Wakerley Partner, HFW, said:

“Outside of the immediate outcome for QGIRCO, this judgment confirms that the DIFC Courts are prepared to apply well-established common law principles to complex broker negligence disputes and provides valuable certainty for parties operating in international insurance markets.

As insurance and reinsurance activity in the Middle East continues to grow, we expect this judgment to become an important reference point in future disputes concerning broker duties, causation and recoverability of losses.”

HFW is recognised as one of the world’s leading insurance and reinsurance law firms, advising insurers, reinsurers, brokers and policyholders on complex disputes and regulatory matters across global markets. The firm’s market-leading team acts on high-value and precedent-setting matters across the Middle East, Europe, Asia-Pacific and the Americas, combining deep sector knowledge with extensive experience before courts, arbitral tribunals and specialist dispute resolution forums.