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ARTICLE · 30 NOVEMBER 2015

Brokers, clients and obligations relating to business interruption cover

Colin Biggers & Paisley
Explore more from Colin Biggers & Paisley

This decision clearly sets out insurance brokers' obligations to clients with insufficient business interruption cover.

AustraliaInsurance
Damian Clancy
Damian Clancy
Rory Butler
Rory Butler

In brief - Eurokey v Giles decision holds important lessons for brokers

In determining claims between brokers and their clients due to the clients' lack of or insufficient business interruption cover, Australian courts would be wise to adopt the decision in Eurokey Recycling Ltd v Giles Insurance Brokers Ltd [2014] EWHC 2989 (Comm) which clearly sets out a statement of principles regarding brokers' obligations to clients.

Business interruption cover claims against brokers on the rise

Most insurance brokers would agree that when a client does not have business interruption cover and an unforeseen event occurs which interrupts the conduct of their business for at least eight to twelve weeks, that client's business is highly unlikely ever to recover from the interruption.

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