Brokers: liability for deficient cover

In Norman Hay plc v Marsh Ltd [2025] EWCA Civ 58 the Court of Appeal has upheld the first instance decision of Picken J, [2024] EWHC 1039 (Comm), on the question of what had to be proved by a client against a broker where the allegation was that the broker had failed to secure a type of cover that ought to have been within the policy and the client had entered into a settlement in respect of an uninsured third-party claim.

The Court of Appeal has confirmed that there is a distinction between a claim by an assured against the insurers in respect of a settlement, and a claim by the assured against the broker for failing to procure a policy that might have covered the settlement.