The Insurance Act 2015 (“the New Act”) comes into force on 12 August 2016. This is the most significant change to insurance legislation since the Marine Insurance Act 1906. The government has described the New Act as “the biggest reform to insurance contract law in more than a century”.
The New Act principally governs the relationship between insurers and their insured, and brings long awaited reform to the ability of an insurer to refuse cover for claims against an insured defendant. A refusal means a claimant without access to an insurance pot and the insured without protection. In particular, this article addresses the effect the New Act may have on those who are seeking to make recoveries from professionals. The New Act is of particular importance in circumstances where the insured professional may not have sufficient assets to meet a claim where insurance cover is refused.