Jul 30, 2020

Landmark Supreme Court Case: D&O Cover, a timely reminder

 

In an increasingly hard Directors & Officers Liability insurance market the landmark Supreme Court case Sevilleja v Marex Financial Ltd is a timely reminder of the importance of the cover for individual directors.

 

In a reflective piece Edwin Coe comment, 

 

’The decision is tantalising news for creditors of insolvent companies who may now seek to break ranks, and abandon the collective remedy through liquidation processes in digging out individual claims against errant directors’.

Of course such allegations may be completely unjustified but the ability to defend against them will depend upon having the right kind of Directors & Officers insurance cover in place. In narrowing the reflective loss principle Marex widens the opportunity for litigation against individual directors, possibly even beyond creditors. 

 

You can read the Edwin Coe article here.

 

Our team have handled Directors & Officers Liability policies for many years so if you’d like our support in reviewing or placing cover we would be delighted to hear from you.

Please email Laura Scougall - Laura.Scougall@blackfordinsurance.com - or call 0131 526 4949.

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Blackford is a trading name of Blackford Group Limited, authorised and regulated by the Financial Conduct Authority (Firm Reference 831508). Registered Office: Blackford Group Limited, 26 Charlotte Square, Edinburgh EH2 4ET (Registered SC616744). Blackford Group Limited is an Appointed Representative of James Hallam Limited, authorised and regulated by the Financial Conduct Authority (Firm Reference 134435).

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