Euro Pools: Broad View of a “Circumstance” Triggering Cover

David Kendall (Partner) |
Sam Tacey (Associate, Cooley (UK) LLP, London) |

Introduction

In this article, we discuss the recent decision of the English Court of Appeal in Euro Pools plc v Royal Sun Alliance Insurance plc <1> and the clarification it provides in relation to the issues that can arise when an insured provides notification of “circumstances” under claims made policies.

The case, building on a number of earlier authorities in this area (including the earlier Court of Appeal decisions Kajima UK Engineering Limited v The Underwriter Insurance Company Limited <2> and HLB Kidsons (a firm) v Lloyd’s Underwriters Subscribing to Lloyd’s Policy No 621/PKID00101 & Ors <3>), re-establishes the importance of viewing a notification of a circumstance broadly, recognising that it is possible for an insured to notify a “hornets’ nest” circumstance, without necessarily appreciating, subjectively, at the time of the notification, the precise scope and extent of