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Policy inception and cause of action

For the purpose of accrual of a cause of action in the tort of negligence, damage which flowed from an unsecured contingent liability incurred by the claimant insurer, under after the event legal expenses insurance policies, was suffered at the time when the cover creating the contingent liability was issued to the defendant solicitors to protect the litigation costs and expenses of litigants, and not at the time when the litigants’ claims failed causing financial loss to the insurer.

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