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ARTICLE · 25 AUGUST 2012

A win for the broker: no damages despite negligent device

Cooper Grace Ward
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The NSW Court of Appeal has ultimately dismissed a claim for damages following negligent advice of an insurance broker.

AustraliaInsurance
Gillian Bristow
Gillian Bristow
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The New South Wales Court of Appeal has upheld a decision dismissing a client's claim for damages arising out of the negligent advice of an insurance broker, in Prosperity Advisers Pty Ltd (Prosperity) v Secure Enterprises Pty Ltd (trading as Strathearn Insurance Brokers (Strathearn) [2012] NSWCA 192.

The facts

Prosperity carried on business providing accounting and financial planning services. It engaged Strathearn to arrange professional indemnity insurance on its behalf. Strathearn recommended a particular policy that would provide cover of up to $6 million. Prosperity sought advice from Strathearn in relation to an aggregation clause in the policy. The question asked was:

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