Professional Indemnity: Cover For Co-Insureds

The reversal of the first instance decision in Brit Syndicates and others v Italaudit SpA and another highlights the dangers of ambiguous policy wording, as well as the difficulty of avoiding it.

Brit wrote a professional indemnity insurance policy for the organisation of accountancy firms practicing under the name Grant Thornton, which, at the time, included the Italian member firm now known as Italaudit SpA ("GT Italy"). Under Extension 3 of the policy, Grant Thornton International ("GTI"), the not-for-profit umbrella corporation which manages the organisation, was included as an Assured Firm solely in respect of claims made against it "arising from claims made against a member firm of [GTI] insured by the terms and conditions of this policy".