Broker negligence

The Court of Appeal decision in Jones v Environcom Ltd and Others [2011] EWCA Civ 1152 upheld David Steel J’s finding at first instance that, while the broker in this case acted in breach of its duties owed to the insured, no loss was suffered as a result of that breach because the risk was uninsurable in any event.

The defendants in the action, Environcom, ran a recycling business which involved the destruction of refrigerators using a plasma gun. In September 2007 a major fire (thought to be caused by a plasma gun) resulted in Environcom making a claim under its insurance policy. Insurers declined coverage for reason of non-dis...

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