McManus & Ors v European Risk Insurance Co
Whether insurer was entitled to reject a "blanket
notification" under a claims-made policy
The claimant firm of solicitors took over another firm of
solicitors ("SF") – a firm which predominantly
carried out conveyancing work – in June 2011. It was insured
under a professional indemnity policy (which incepted on 1 October
2011) by the defendant. That policy was a claims-made policy,
requiring notification when the insured first became aware of
circumstances (meaning "an incident, occurrence, fact, matter,
act or omission which may give rise to a claim" against the
insured). One month after inception of the policy, the claimant
received a claim from a former lender client of SF alleging
breaches of contract and tort arising out of a mortgage transaction
(for which the claimant, as the successor of SF, might be liable).
This claim was notified to the insurer (and the notification was
accepted as being valid). Thereafter, a
