Non-Disclosure Arguments For Construction Insurers? Consider Laker Vent First

The Court of Appeal's decision in Laker Vent was handed down on 11 February 2009. It considers two fundamental insurance principles, non-disclosure and notification, in the context of a construction dispute, and is the first time that the Court of Appeal has reviewed and applied its own decision in HLB Kidsons v Lloyds Underwriters (2007).

Laker Vent, a specialist mechanical engineering contractor, notified its insurer, Templeton, of a potential claim under its policy (the 'Policy'). The potential claim arose out of a disputed construction contract between Laker Vent and a third party contractor (the 'Contract') which later became the subject of arbitration. Laker Vent subsequently sought an indemnity from Templeton in respect of its legal costs in connection with the arbitration.