PFC Food CC v Three Peaks Management (Pty) Ltd (5573/2009)
PFC Food CC v Three Peaks Management (Pty) Ltd (5573/2009) [2012] ZAKZDHC 57 (10 September 2012)
The court found that the defendant, as insurance broker, failed to act with reasonable care and skill in advising the plaintiff on business interruption insurance. The defendant did not obtain sufficient financial information, did not explain the calculation of business interruption losses, and failed to warn the plaintiff about the risk of under-insurance and the application of average. The evidence showed that the plaintiff relied on the broker for advice and would have increased cover if properly advised. The defendant's reliance on the plaintiff's instructions was insufficient, as the bro…
Source excerpt
- Insurance Broker Liability
- Business Interruption Cover
- Reasonable Care And Skill
- Quantum Of Loss
- Average Clause Application