The infinity Reliance Judgment – A Body Blow for Brokers?

On 28 November 2023, the High Court handed down its judgment on Infinity Reliance Ltd v Heath Crawford Ltd. For the insurance industry, and brokers in particular, this is probably the most significant judgment related to broker negligence since the judgments in Café de Lecq Ltd v R. A. Rossborough (Insurance Brokers) Limited 2012 and Nicholas G Jones v Environcom Ltd 2010.

The courts are expecting of brokers an increasingly demanding level of performance in their attention to the advice provided. Brokers are aware that most clients simply want to reduce their outgoings, yet the broker is duty-bound to provide sufficient advice that the client can make an informed choice from the numerous cover options available.

The Infinity case concerns the broker’s advice about the scope of business interruption insurance available on the market and is focused on the need to ensure an adequate level of cover for what turned out to be a growing business. The judgment is required reading for anyone advising clients on general insurance of any type.