Meaning of damage in insurance

Produced in partnership with Keir Howie of 7KBW and Frederick Alliott of 7KBW

Practice notes

Meaning of damage in insurance

Produced in partnership with Keir Howie of 7KBW and Frederick Alliott of 7KBW

Practice notes

The concept of ‘damage’ in the insurance context

The concept of ‘damage’ plays a critical role in determining the scope of cover provided by various different types of insurance. Common examples of types of insurance policy where recovery is, or can be, contingent on proving damage to property include the following:

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marine cargo insurance
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construction all risks (CAR) insurance
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domestic and commercial property insurance
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business interruption cover, especially where this is the counterpart of a traditional property policy
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cover for sue and labour or investigation costs under some property policies
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liability policies triggered by the legal liability of the insured to a third party for physical damage to their property

The precise meaning of ‘damage’ can vary, and it will always be influenced by the context in which the word appears. There is no universal definition which applies in all circumstances; as ever it is essential to construe the word in the context of the particular insurance policy in which it features. The

Keir Howie

Barrister, 7KBW

Keir maintains a wide-ranging practice in commercial litigation and arbitration. He has particular expertise in civil fraud, insurance and reinsurance, shipping and international trade, and all aspects of private international law. He is frequently instructed in cases involving allegations of dishonesty, corruption and other serious misconduct.

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Keir is ranked by both Chambers UK and Legal 500 for his work in civil fraud, insurance and general commercial litigation. He has been described in the directories as “one of the best juniors currently working at the commercial bar”, “a star of the junior bar”, and “ahead of any other junior of similar call”. He was also shortlisted for insurance junior of the year at the Chambers UK Bar Awards in 2020.

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Keir has substantial experience of large-scale disputes, and he is familiar with the unique demands of heavy trials in which very large sums are at stake. He has acted in several of the most high-profile commercial cases of recent years: prominent examples include Brillante Virtuoso (marine insurance fraud), Republic of Djibouti v Boreh (alleged corruption relating to infrastructure projects in Africa) and Excalibur v Gulf Keystone (dispute over oil and gas exploration rights in Iraqi Kurdistan). Each of these disputes involved claims in excess of US$100m and trials lasting for several months, and all attracted significant media interest.

Frederick Alliott

Barrister, 7KBW

Fred is a commercial barrister specialising in complex, high-value commercial litigation and arbitration. His broad practice has a particular focus on civil fraud, insurance and reinsurance, energy, international trade and carriage of goods, professional negligence and shipping disputes. He is used to appearing on his own as well as working as part of large multi-counsel teams.

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Fred is frequently instructed in cases involving allegations of dishonesty, corruption and other serious misconduct. He is developing a reputation as being highly experienced in this area: recent led work has included four separate multi-million-dollar fraud actions, two of which resulted in lengthy commercial court trials, as well as ongoing $1bn worldwide freezing order proceedings (with associated jurisdictional challenge). He also acts in international arbitrations, both ad hoc and under a variety of rules (LCIA, ICC, SCC, LMAA, GAFTA, etc.) as well as in court in aid of arbitral proceedings and concerning the enforcement or challenge of arbitration awards.

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Fred is delighted to accept instructions in any type of commercial dispute, whether alone or being led.

Jurisdiction(s):

United Kingdom

Key definition:

Term definition

What does Term mean?

The period of time from when a loan is borrowed to its final stated repayment date

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