Author: Di Robertson

The following is based on a recent case that the Flaxmans team handled highlighting the risks involved when a leaseholder hands over the security of its investment in the lease to third parties over which it has no control.  PHOENIX is a property owner. In January 2019 Phoenix purchased the freehold of twelve flats.  The leaseholder arrangements were not without complication. The chain was: The freeholder is the XYZ Property Group as evidenced by a head lease The freeholder has granted a...

The temptation to deny a customer’s complaint is strong. No-one likes to be criticised and the thought of a complaint going to the FOS, or worse, to litigation and a PI claim, can send shivers down the spine. We recently handled a complaint for a broker that had all the hallmarks of a serious potential PI claim but actually turned out rather well for all parties. At a time when the reputation of the industry is at a ‘low ebb...

On 22 September 2020, the FCA published its General Insurance pricing practices market study report. The two-year project explored thousands of policies and consulted with industry stakeholders in order to get to grips with the practice of price walking – where new customers pay cheaper premiums than renewing policyholders. In light of its findings, the FCA has proposed a series of measures to mitigate price walking. This includes insurers providing data to demonstrate they are pricing policies fairly and increasing the transparency and methods...

Tucked away out of sight of the Covid-19 Pandemic trauma is another simmering insurance trauma of potentially gargantuan proportions affecting everyone involved in the ‘built environment’.  A Commissioned Report    Flaxmans  were recently commissioned by Wren the Architects Mutual to examine the status of professional indemnity insurance for architects in the wake of the Grenfell fire and subsequent inquiries. The report recently published is now being widely circulated as it identifies what could become one of the most significant uninsurable risks in the...

Recent reports, of the vulnerability of brokers to being sued in the wake of the Covid-19 coverage litigations, mostly by parties that stand to gain work from litigation, are understandably causing firms to be concerned. We have already reported in our Recent Covid-19 Bulletins the hurdles that will have to be overcome in a successful claim against brokers, generally, and subsequently BIBA published its own opinion with the support of Weightmans, solicitors which also offers reassurance. However, already we are seeing...

Customer expectation determines the trust of the public in insurance and highlight, why that fragile trust has been eroded yet again. This time by the drastic reactions of the insurance industry to an unprecedented claims-pandemic arising from Covid 19. If an insurance policy is called upon just once in a policyholder’s business career it is, at that time the most important thing to them, bar nothing. When they are told “sorry, but your claim is not covered on this occasion” ;...

What happens when the interruption is interrupted? Michael Wilson - Flaxmans Regional Director The Red Lion Hotel suffered a fire in March 2019.  It was a thriving business through its drinks and restaurant activities as well as a successful B&B offering.  After some delay, the material damage claim was agreed and it was estimated it would take 18 months to reinstate the damage to the building and contents. The policy contained BI cover with an indemnity period of 18 months. On the 12-month...

Firstly, it is important to say that the word “pandemic” does not denote the characteristics or seriousness of a virus or disease. Rather, it is a word that distinguishes an “epidemic”, being a disease that affects one or a few nations from a disease that affects all (Pan) nations, i.e. all nations in the world; hence “pandemic”. However, the seriousness of the current pandemic is not measured in medical and health terms alone. It is also likely to have a severe effect on...

Flaxmans continue to be involved in supporting a number of Doncaster residents whose properties were damaged by the floods in early November 2019.  Very few claims have been declined altogether, but we are still finding that some are taking an inordinate amount of time to really get going.  Three such residents have yet to even agree with their loss adjusters whether or not damp plaster needs to be removed before the drying out process can be completed. For the record, Flaxmans...

Two of Flaxmans Directors have recently made a number of trips to the flood affected areas in Yorkshire to offer flood victims support and advice in specially arranged Claims Clinics. The initial trip led them to Bentley where they spent the day in informal discussions with flood victims at the neighbourhood drop-in centre, as well as more formal meetings with other affected residents. This was followed up with a further visit a few weeks later. The most recent trip was to Fishlake, a...