The End of the Dark Arts? Insurance Commissions Under the Spotlight

A recent case – London Trocadero (2015) LLP v Picturehouse Cinemas Limited and others [2025] EWHC 1247 (Ch) – could have major implications for Landlords insurance commissions being reduced.

In short, the dispute centred on part of the insurance broker’s commission that was paid to the Landlord.  The tenant challenged having to pay for this portion of the premium, arguing it did not form part of the premium payable to the Landlord for keeping the centre insured, and was therefore not recoverable under the terms of the lease.

The judge agreed.  They found that the Landlord alone benefited from the commission, no actual service had been provided in return, and it didn’t represent a fair or reasonable reward for arranging insurance.

What does this mean in practice – and how can Assure help occupiers?

High insurance premiums often come with high commission rates – something we’ve always challenged.  Thanks to our in-house database, Verivi, we hold the data for thousands of properties allowing us to highlight premiums that are above the expected level.  As with all services, the lease terms are critical – but even where leases say the Landlord can retain a commission, this case opens the door to questioning whether that’s reasonable in practice.  Service charge budgets typically include smaller elements of insurance, though in some larger schemes, the entire premium is included – these will also be securitised as part of our investigations.

Thanks to our joined-up approach to service charge and insurance reviews, we’re confident this development will lead to obtaining significant savings for our clients.

Want to know more?

To learn more about how Assure can help reduce your insurance recharge costs, fill out the contact form below and one of our insurance experts will be in touch.