Insurance

The Court of Appeal, Civil Division, held that professional indemnity insurers were obliged to indemnify solicitors who were liable to reimburse the loans made to their clients in order to defray the disbursements made by those clients. Obligations arising out of such loans were essentially part and parcel of the obligations assumed by a solicitor in respect of his professional duties to his client, rather than obligations personal to the solicitor. They were inherently part of his professional practice and were assumed, as an essential part of his duty was to advise the client as to the likelihood of success in the intended litigation.