Brisbane Grammar School is locked in a legal stoush with its insurance broker, Aon, after insurers refused to pay out a successful compensation claim. The prestigious school was sued after it was revealed a counsellor sexually abused some 70 students between 1975 and 1988.

But insurers say they are not fully liable, alleging former headmaster Maxwell Howell ignored warnings about the paedophile on the payroll. They paid only 70% of post-1980 claims. Brisbane’s Sunday Mail says it has documents that show the school has had to pay $1.17 million from its own funds. It is now suing its insurance broker, Aon Risk Services, in an attempt to recover the money.

The school says it wasn’t aware allegations needed to be passed on to insurers, and also accuses Aon of losing the records of its insurance coverage for five of the years in question.

The Sunday Mail says Aon has denied liability and will contest the claim. The company was unable to comment to Sunrise Exchange News in time for publication.