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Court revisits application of causation and loss of a chance principles in no-insurance claim against broker

Briefing
7 June 2024
2 MIN READ
2 AUTHORS

In the recent matter of Norman Hay, the Commercial Court applied loss of a chance principles to a professional negligence claim against an insurance broker, in the context of a strike out application.  Specifically, the judge found that where a claimant had no insurance policy in place at all, due to alleged negligence of the broker, the measure of loss will be the claimant’s loss of a chance to recover under the hypothetical policy. 

This means that the claimant may recover in full if it can establish that there would certainly have been cover that would have paid out. If, on the other hand, it can show there would have been an opportunity to settle at a discount, notwithstanding a coverage defence, it may be entitled to recover damages on that lost chance to settle for a lower sum.

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