Section 9 plays havoc with claims-made and notified policies again
All liability policies were once drafted as occurrence-based policies i.e. they insured liability arising from bodily injury or property damage that occurred during the policy period.
This formula for triggering cover under a policy can create headaches for liability insurers if there is a delay between the occurrence of the bodily injury or the property damage, and the discovery of it. One of the worst examples was the discovery last century of just how harmful asbestos is to humans. Although workers’ lungs were being injured at the time of their exposure to asbestos, the first symptoms of their injuries took decades to appear. In jurisdictions like the U.S.A. where there is no ACC and where bodily injury litigation is common, employees were suing their employers decades after their lungs were first injured. Employers were then notifying their liability insurers for the first time in relation to policies that had expired decades earlier. [Read more…]