Partially upheld: insurance intermediary administrative error - failure to ensure cover in place complaint against Lloyd Latchford Group Limited

Decision detail

Summary

Mr K complained that Lloyd Latchford Group Limited, acting as an insurance intermediary, failed to ensure motor insurance cover was in place for his leased car due to an administrative error. Mr K discovered on 17 November 2025 that his vehicle had no insurance cover, though his lease company arranged for cover to be backdated to 3 November 2025. However, a gap remained between 15 September and 3 November 2025, which was not fully resolved until January 2026 when Lloyd Latchford backdated cover to 15 September 2025. The ombudsman upheld the complaint in part, finding that Lloyd Latchford had received instructions to extend the cover prior to the lapse but failed to act promptly, causing Mr K distress and inconvenience. The ombudsman awarded £200 total compensation, rejecting Mr K's request for a higher amount.

The Ombudsman's reasoning

Lloyd Latchford failed to act promptly on instructions it had received to extend Mr K's insurance cover, resulting in a gap between 15 September and 3 November 2025. While the business correctly backdated cover in full to resolve the issue, it could have done so much earlier. The ombudsman found that Mr K experienced shock, inconvenience, and anxiety upon discovering the lapse, though he was ultimately protected as the business was responsible for the error. The compensation was increased to £200 to reflect the distress caused and the business's failure to resolve the matter promptly despite having the necessary information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website