Broker loses appeal over negligence

The NSW Court of Appeal has dismissed an appeal against a finding of negligence by an insurance broker.

In 2012, the Supreme Court of NSW found Horsell International liable for injuries inflicted to a fisherman by its client Dive Two.

Dive Two ran a scuba-diving business, for which Horsell placed its cover. When the accident occurred the Dive Two vessel was being used for a recreational trip, causing the insurance company to knock back its claim.

The Supreme Court found Horsell was instead liable, for failing to make clear to its client that private, non-business activities were not covered by the policy.

The Court of Appeal agreed, stating: “Horsell was negligent in not making clear to Dive Two and Mr Todd that the liability insurance which had been arranged did not extend to liability arising from recreational activities not engaged in as part of Dive Two’s business.”

Click here for a full case summary of the original decision.