Upheld: Account administration errors complaint against Xbridge Limited

Decision detail

Summary

Mr S purchased a landlord insurance policy through Xbridge in February 2025 but Xbridge failed to properly process it, leaving him uninsured. The error was discovered in October 2025, approximately eight months later. Xbridge immediately admitted the error and offered to retrospectively arrange cover while paying the additional premium, but Mr S declined and requested a refund instead. Xbridge refunded the premium and offered £200 compensation. The ombudsman upheld the complaint and required Xbridge to pay the £200, finding it fair and reasonable compensation given that Mr S experienced distress only briefly after discovering the error, and no claim had been made during the uninsured period.

The Ombudsman's reasoning

The ombudsman acknowledged that Xbridge's error was extremely reckless and potentially serious, but found that Xbridge took appropriate remedial action immediately upon discovery. The ombudsman reasoned that Mr S experienced distress only briefly - from discovery in October 2025 until Xbridge acknowledged the error and took ownership of consequences. The ombudsman noted that Mr S's worry was quickly allayed because no claim had been made during the uninsured period, demonstrating the risk had not materialized. The ombudsman concluded that £200 was fair and reasonable compensation for the limited period of genuine concern Mr S experienced.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website