Brokers should ensure all communications are recorded ’to eliminate evidential uncertainty should a dispute arise’, says partner
Broker communications with clients and underwriters should be “carefully recorded”, following Cardiff City Football Club’s denial that it took out a £20m insurance policy for the life of Argentinian footballer Emiliano Sala the day after he died.
This is according to Clive O’Connell, partner and head of insurance and reinsurance at law firm McCarthy Denning.
Striker Sala, aged 28, died in a plane crash while travelling to join Cardiff City in a transfer from French side Nantes.
Pilot David Ibbotson and Sala died when the plane crashed into the English Channel near Guernsey on 21 January 2019.
Cardiff City are now demanding £10m in damages from Miller Insurance – accusing the insurer of not making clear that it needed pre-warning to add another signing to the football club’s insurance policy.
These developments follow flight organiser David Henderson’s reappeal being refused last week on Friday (3 February 2023), after being found guilty of recklessly endangering the safety of an aircraft in November 2021.
O’Connell told Insurance Times: “Negligence claims against brokers are often – like this case appears to be – fraught with controversy over the facts. The court will hear evidence and draw its conclusions as to which story it finds more credible.”
For O’Connell, the lesson to be learnt for brokers is to ensure all communications are recorded “to eliminate evidential uncertainty should a dispute arise or indeed to avoid future disputes”.
Insurance Times has also contacted Miller Insurance for comment.