In the world of insurance, timing is everything. Missing notification deadlines, whether for claims or incidents that could lead to claims, can have serious consequences for businesses and their clients. The recent case of Archer v Biplob Restaurant serves as a stark reminder of these risks, showing how failing to meet notification obligations can completely void insurance coverage.
This article explores the case, the High Court’s findings, and the practical lessons for businesses. It also offers actionable steps to help ensure compliance and protect your coverage.
The Case at a Glance
Imagine this: A customer dines at a restaurant and later files a personal injury claim, alleging illness from the meal. The restaurant has an insurance policy to cover such claims but fails to notify its insurer of the incident within the required timeframe.
In this case, the delay, lasting six to twelve months, breached the policy’s “notify as soon as reasonably practicable” clause. During this period, the restaurant entered voluntary liquidation. The customer then sought damages directly from the insurer under the Third Parties (Rights Against Insurers) Act 2010 (TP(RI)A 2010), which allows claims against insurers when the insured is insolvent.
However, the insurer denied liability, citing the restaurant’s failure to provide timely notice. The High Court ultimately sided with the insurer, leaving the claimant without compensation. For the insolvent business, this outcome was academic. It was no longer trading, and the question of whether the customer could recover damages had no direct impact on it.
For businesses that are still trading, however, the implications are far more significant. On one hand, they may take comfort in knowing that customers can seek redress directly from insurers in cases of insolvency. On the other hand, they are likely to be far more concerned about the potentially catastrophic consequences of an insurer refusing to respond to a claim due to a breach of policy.
Key Findings from the High Court
The High Court’s decision hinged on three critical points:
Insurance policies often include “conditions precedent,” which are mandatory requirements that must be met before coverage applies. In this case, the restaurant’s significant delay in notifying the insurer was a clear breach, allowing the insurer to deny liability.
While the TP(RI)A 2010 allows third parties to step into the shoes of the insured, these rights are subject to the same conditions as the original policyholder. Since the restaurant’s coverage was already voided due to the breach, the claimant could not benefit from the policy.
The claimant argued that Section 9(2) of the TP(RI)A 2010 allowed third parties to fulfil policy conditions on behalf of the insured. However, the court clarified that this provision does not apply to breaches that have already occurred. The failure to notify the insurer on time was deemed an irreversible error.
What This Means for Businesses
The Archer v Biplob Restaurant case underscores the importance of strict compliance with insurance policies. Here are three key takeaways for businesses:
Notify your insurer promptly, not just for formal claims but for any incidents that could potentially lead to a claim. Even seemingly minor issues should be reported to avoid risking a breach of policy.
Once a condition precedent is breached, it cannot be undone. No amount of effort or good intentions can restore lost coverage. Adhering to policy requirements from the outset is crucial.
Administrative oversights, especially during financial difficulties or transitions, can lead to missed deadlines. As this case shows, such lapses can have severe legal and financial repercussions.
How to Minimise Insurance Risks
To avoid similar pitfalls, businesses should adopt proactive measures to strengthen their insurance compliance:
Create internal procedures for identifying and escalating potential claims. Assign responsibility to a specific individual or team to ensure timely action.
When in doubt, notify your insurer. Prompt and transparent communication can help preserve your rights under the policy.
Conduct routine audits of your insurance policies to stay informed about coverage terms, notification deadlines, and conditions precedent. This knowledge is essential for effective risk management.
Conclusion
The decision in Archer v Biplob Restaurant underscores the vital importance of meeting insurance policy obligations in a timely manner. In this case, the restaurant’s delay rendered the customer uncompensated. This was a loss academic to the insolvent business, but deeply consequential for the claimant.
For trading businesses, the stakes are considerably higher. A failure to act promptly can result in an insurer declining a claim, exposing the company to significant financial and reputational risk.
To mitigate this, businesses must establish rigorous internal procedures for notifying insurers, maintain proactive communication, and routinely review existing coverage. Waiting for a claim to materialise before taking action is a high-risk strategy. Early engagement and ongoing vigilance are essential to preserving insurance protection and avoiding the costly fallout of inaction.
Legal disclaimer
The matters contained within this article are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such.
Whilst every effort is made to ensure that the information is correct, no warranty, either express or implied, is given as to its’ accuracy, and no liability is accepted for any errors or omissions.
Before acting on any of the information contained herein, expert advice should always be sought.
© Melissa Worth, July 2025