Not upheld: claims handling delay and alleged loss of chance to pursue underlying legal claim complaint against AmTrust Specialty Limited
Financial Ombudsman decision DRN-6371313 of 2026-05-20T00:00:00+00:00. claims handling delay and alleged loss of chance to pursue underlying legal claim complaint against AmTrust Specialty Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6371313 |
|---|---|
| Decision date | 2026-05-20T00:00:00+00:00 |
| Firm | AmTrust Specialty Limited |
| Product | legal expenses insurance |
| Claim type | claims handling delay and alleged loss of chance to pursue underlying legal claim |
| Outcome | Not upheld |
| Remedy | AmTrust Specialty Limited should pay £400 compensation (if not already paid) to acknowledge the additional distress caused by the delay between January and May 2024 resulting from the indemnity limit error. |
Summary
Mr G and Ms G complained about AmTrust's handling of their legal expenses insurance claim relating to defective work on a boat purchased from a boatyard. The claim process spanned from June 2021 to April 2025, with Mr G and Ms G arguing that delays caused them to lose the chance to pursue their underlying legal case, particularly regarding a 12-month warranty period. AmTrust requested supporting documents, which were not provided until November 2022, then referred the claim to solicitors for assessment. The first solicitors firm closed, and the replacement firm took until May 2024 to confirm reasonable prospects of success. Further delays occurred while the solicitors prepared a letter of claim. The ombudsman found that AmTrust was not responsible for most delays, with the only attributable delay being January-May 2024 due to confusion over the indemnity limit, and upheld AmTrust's offer of £400 compensation as fair.
The Ombudsman's reasoning
The ombudsman found that AmTrust acted reasonably in requesting supporting documents before proceeding with the claim, as it is standard practice in legal expenses insurance. The delay from August 2021 to November 2022 was not AmTrust's responsibility as it was waiting for Mr G and Ms G to provide evidence. The delay from November 2022 to May 2024 was largely due to the solicitors' assessment process and the first firm's administration, for which AmTrust was not responsible. The only delay attributable to AmTrust was between January and May 2024 due to the indemnity limit confusion. From May 2024 onwards, the case was in the solicitors' hands and AmTrust was not responsible for their pace of work. The ombudsman rejected the argument that delays caused Mr G and Ms G to lose the chance to pursue their case, as the claim could not have been processed during the initial waiting period anyway.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AmTrust Specialty Limited, all decisions | 144 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website