Double insurance and contribution

Produced in partnership with Susie Wakefield of Shoosmiths

Practice notes

Double insurance and contribution

Produced in partnership with Susie Wakefield of Shoosmiths

Practice notes

Overlapping insurance polices

There are various reasons why an insured may end up with overlapping insurance cover, whether deliberately or otherwise.

Examples include the situation where the insured takes the benefit of other insurance arranged by another party or where, in the commercial world, risk managers may be unaware of prior insurances effected by predecessors in their role.

Similarly, an insured may inadvertently take out insurance in respect of specific property without realising that the property is already covered by an existing Policy with a broader Scope of cover. Alternatively, the insured may simply wish to increase its amount of cover or, conceivably, to protect itself against the risk of its insurers becoming insolvent.

There is no common law requirement to avoid double insurance. Insureds may insure an insurable interest as many times under as many policies as they wish (Godin v London Assurance (1758) 1 Burr. 489 (not reported by UU��ֱ��®); Albion Insurance Co Ltd v Government Insurance Office of New South Wales (1969) 121 C.L.R. 342) (not reported by UU��ֱ��®). Nor is there any common

Susie Wakefield

Shoosmiths

Susie Wakefield is a partner in Commercial Litigation specialising in insurance and reinsurance litigation and arbitration. Susie also has a broad range of experience advising clients in the energy sector and in commodities trading.

Susie qualified and practised for many years in New York and Bermuda as well as in London. Susie has advised Bermuda, US, and London market insurers and reinsurers in litigation in federal and state courts in New York, the Supreme Court of Bermuda, and the High Court and in arbitration. She has represented clients in complex, multimillion-dollar disputes, including cases with substantive international and multijurisdictional aspects.

Recent experience includes:-

advising on a range of (re)insurance matters, including claims and coverage disputes and issues arising in connection with Bermuda Form policies and reinsurance arrangements involving captives and segregated account companies.

Advising insurers/reinsurers on complex policy wording reviews; significant property and casualty losses; claims involving allegations of fraud, misrepresentation, and nondisclosure; D&O issues; breach of warranty claims; claims for contribution from co-insurers; and insolvency-related matters.

Advising on numerous insurance and reinsurance (both facultative and treaty) coverage disputes in litigation and arbitration ' under the Arbitration Act 1996, the Federal Arbitration Act, the Bermuda International Conciliation and Arbitration Act 1993, and the UNCITRAL Model Law as well as ad hoc arbitrations and those under various institutional rules in the UK, Europe, and the US (notably ARIAS US). Susie co-authored the 'Lloyd's and London Market' chapter of volume seven of the New Appleman on insurance Law Library Edition, 2012.

Susie qualified in the UK in 1997 and is also admitted to practise in New York (2003) and Bermuda (2008).

Jurisdiction(s):

United Kingdom

Key definition:

Contribution definition

What does Contribution mean?

A right of someone to recover from a third person all or part of the amount which he himself is liable to pay.

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