High Court Judge Refuses to Throw Out AmTrust’s Professional Negligence Claim
A High Court judge has dismissed an application to strike out a professional negligence claim brought by AmTrust Europe Limited against MD Insurance Services Limited (MDIS) and its subsidiaries. The claim alleges a “wholesale failure” to properly inspect and report on construction risks, resulting in the issuance of flawed insurance policies for new housing developments.
The dispute centers around a binding authority agreement between AmTrust and MDIS, dating back to 2011. Under this agreement, MDIS managed underwriting and claims handling and was authorized to issue policies on AmTrust’s behalf. MDIS used its in-house surveying subsidiaries to inspect new-build properties before policies were approved, culminating in the issuance of Certificates of Approval, a prerequisite for coverage.
AmTrust alleges that these surveys were conducted negligently, leading to policies being underwritten for developments later found to have serious structural defects. MDIS’s subsidiary, MD Warranty Inspection Services Limited (MDWIS), argued that it owed no duty of care to AmTrust due to a lack of direct communication or formal contractual link. However, Judge Charles Hollander KC rejected this argument, stating that the surveyors were aware that their certifications were central to whether policies would be issued.
The judge concluded that there was a “close relationship” between the surveyors and the insurer, sufficient to establish a duty of care. While allowing certain amendments to AmTrust’s pleadings, Hollander KC ruled that several proposed claims were time-barred and introduced new allegations not originally pleaded.
The case highlights the increasing scrutiny of delegated underwriting arrangements and the legal exposure of third-party service providers, particularly where insurers rely on technical assessments in high-value property policies. The judge suggested that the matter might be better heard in the Technology and Construction Court due to its specialist jurisdiction.
Case Details
- Case: AmTrust Europe Ltd v MD Insurance Services Ltd & Ors [2025] EWHC 1468 (Comm)
- Date: June 13, 2025
- Court: High Court (Commercial Court)
- Judge: Charles Hollander KC
- Claimant: AmTrust Europe Limited
- Defendants: MD Insurance Services Limited, MD Warranty Inspection Services Limited, MD Warranty Support Services Limited (Proposed)
- Solicitors: Reynolds Porter Chamberlain (for AmTrust), Beale & Co (for MDIS), Mills & Reeve (for MDWIS and MDWSS)
