Insurance Disputes

Home » Commercial Litigation » For Businesses » Insurance Disputes

Insurance cover provides peace of mind for insured parties but sometimes cover can be withdrawn or limited because an insurer claims that a particular condition or provision of the policy has not been complied with. The unexpected loss of cover can place companies and individuals in a very difficult position. We have dealt with cases where a claim has been accepted only for cover to be withdrawn perhaps as a result of input from a loss adjuster or underwriter.

Understanding your position with an insurance policy, the scope of cover and the meaning of any exceptions or conditions applying to the policy is the first stage of dealing with any dispute. If you are a small business or private individual, then you may be able to make a complaint to the Financial Ombudsman Service (FOS). Although the FOS does not have jurisdiction to award legal costs against insurers who have unreasonably withdrawn cover, we have provided support to clients who have brought their own complaints after exhausting the insurers’ own complaints procedure or made complaints on their behalf where the losses justify our full involvement.

We have also been instructed by larger businesses to file applications in the High Court for a declaration as to the extent of cover available under a policy or whether a particular condition or exclusion may be relied upon to justify the withdrawal of cover. In one case we simultaneously brought a claim against the insurer and assumed responsibility for conducting the defence in a product liability claim against our client.

How can we help you?

Reviewing the terms of the policy and considering whether any exceptions or limitations on the cover have been engaged.

Preparing and submitting complaints to the FOS and dealing with any submissions by the insurer.

Preparing and issuing applications as to the meaning of the policy, the extent of cover and whether the insurer can withdraw a claim.

Taking over the conduct of ongoing litigation which was previously funded by your insurer before cover was withdrawn.

Recent Successes:

Acting for the owners of a commercial property who found themselves underinsured in respect of losses arising from business interruption and property damage following a fire, which resulted in the death of two occupants. We made a successful complaint to the Financial Ombudsman to secure funding for legal representation for an inquest into the fire and concluded a substantial settlement of the client’s professional negligence claim against the broker at mediation without the need to issue proceedings.

Defending a component manufacturer in a substantial product liability claim. The claim arose from the supply of defective gaskets used in electrical transformers that were a component in radiotherapy machines. After the client’s insurer withdrew cover, we obtained a stay in the proceedings brought by the manufacturer of the transformers and commenced proceedings for a declaration that the client’s insurance cover had been wrongfully withdrawn. Both claims settled simultaneously at mediation with a payment being made by the client’s insurer to the manufacturer of the transformers.
Acting for an individual facing a claim by his insurer for the reimbursement of monies that had been paid to settle a substantial personal injury claim following an accident in which his daughter had crashed a car whilst driving unsupervised with a provisional licence. The case settled for one-tenth of the sum claimed on the basis that the insurer could have refused to make certain payments to the injured party.
Assisting an insurance broker to defend negligence proceedings that had been issued in Northern Ireland by a former client and construction contractor whose Liechtenstein-based insurer had become insolvent and unable to compensate one of the former client’s employees who had fallen from scaffolding. After arranging to file a defence based on jurisdiction and the client’s own knowledge of the insurer’s financial position, the parties agreed a settlement.