Court ruling on policy switch
The London Circuit Commercial Court handed down a judgment on October 27, 2026, ordering Advisory Insurance Brokers, trading as Morgan Law Insurance Brokers, to pay £1,249,362.50 in damages to Camstar Herbs Limited. The dispute arose after a fire broke out on August 16, 2021, at Camstar 1, the main processing plant for the world's largest producer of dried parsley outside China. Prior to 2018, Camstar held business interruption cover on a gross revenue basis, which accounts for the cost of purchasing raw materials. The broker recommended switching to a cheaper Aviva policy to secure an annual premium saving of roughly £7,000, but the new policy was written on an insured profit or gross profit basis, which strips out purchase costs.
Uninsured post-fire payments
Following the fire, which severely reduced processing capacity during an active harvesting season, Camstar chose to compensate its growers and harvester based on what they would have earned without the incident, totaling £1,249,362.50. The company argued it had a commercial commitment to maintain these payments to secure future supply. When Camstar claimed these costs, insurer Aviva rejected them because purchase costs were uninsured under the gross profit structure. The court ruled that the broker breached its duty by failing to understand the distinction between the two policy types and by issuing a recommendation letter that gave the misleading impression that the Aviva policy offered identical cover.