Sharing the cost and the blame?

Brokers have effectively been given the green light for passing some of the claim onto third parties, after the Court of Appeal ruled, in a recent case, the mutual discharge test could be applied.

It is a situation to cause even the most unflappable of brokers to
lose sleep: a client asks for cover to be placed for a particular project,
the insured peril duly occurs and it is discovered that no cover was in
fact arranged. Then, with no insurance cover, the client turns to the
broker for reimbursement of their losses.


Such situations are relatively rare but they can prove extremely costly
for brokers and their professional indemnity insurers. Thankfully, it is
sometimes possible for the