The Supreme Court last week delivered a landmark decision in the case of Jones v Kaney, effectively abolishing the immunity previously afforded to expert witnesses from claims for negligence arising out of evidence prepared for the purposes of, and in connection with, legal proceedings.

Insurers will need to consider carefully the potential ramifications of this decision.  In particular, they will need to monitor new claims notified and resulting from expert witness work (hitherto considered by insures as low risk in view of the immunity previously in place).

Insurers will need to consider the impact this ruling may have with regard to the pricing of Professional Indemnity Insurance policies for those who work in these areas.  Insurers may wish to consider whether to exclude expert witness work from standard professional indemnity policies, and then to write it back in where necessary, possibly via a specific endorsements to cover such work and with an extra premium payable, depending upon the Insurers perceived risk.

David Hedgecock

Hammond Professional Indemnity Consultants

5 April 2011