Allocation of defence costs in Directors & Officers Liability claims can be a controversial and potentially distracting issue for both insurers and insureds.
In our new Trending Topic, written in collaboration with Wotton Kearney, we explore some of the challenges associated with allocating Defence Costs in Directors & Officers (D&O) claims.
Challenges can arise when evaluating the exposure to both covered and not covered aspects of a claim, particularly in the early stage of proceedings without the benefit of all relevant information. This has the potential to impact the success of the claim in achieving a mutually acceptable outcome for all parties.
Liberty’s approach covers this risk, and we have structured our policy to include an allocation clause for defence costs that mitigates this impact. This gives us the ability to offer mutually beneficial solutions when a client faces covered and non-covered exposures.
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