Impact Funding Solutions Ltd v AIG Europe Ltd (SC) 26/10/16

A finance company’s claim in relation to a funding agreement with a solicitors’ firm was outside the scope of the firm’s professional indemnity policy which excluded loss in connection with any claim or any loss arising out of any breach by the insured of terms of any contract or arrangement for the supply of services in the courts of providing Legal Services. The doctrine of narrow construction of exemption clauses had no application where the clause was allocating commercial risk as opposed to limiting liability arising by operation of law and the funding arrangements for the firm’s clients amounted to a service provided to the firm.