Demarcation between PI and D&O Policy is a fine one

A Directors and Officers Liability Policy is a type of Professional Indemnity Policy that provides cover in different and narrower circumstances. The two policies are meant to dovetail together so that liability for a wrongful act is covered under one or the other, but not both at the same time. Drafting the two policies to create the demarcation between them involves relatively subtle changes.

Both policies share much in common:
1. They are both liability policies
2. They are both claims-made and notified policies
3. The both insure liability for wrongful acts (usually a negligent act or omission)

The only real difference between them is the capacity in which the insured is alleged to be liable. In a D&O Policy the insured must be allegedly liable in the insured’s capacity as a director or officer of the company specified in the policy. In a PI Policy there is no such constraint, although there is usually a similarly worded exclusion to the same effect. The greater the similarity between the two, the better, as this is more likely to lead a cleaner dovetailing of the two policies.
[Read more…]

Lessor cannot recover insurance excess from lessee when s269 Property Law Act applies

 

Background

Section 269 of the Property Law Act 2007 has been in force now for approximately 10 years. That is the section that exonerates the lessee for accidental damage to the lessor’s property if the lessor is insured for that damage or agreed to insure for that damage. This has the practical effect of making the lessor’s insurance available for the benefit of the lessee as well, as though the lessee is named as an insured under the lessor’s policy. There are only two exceptions to the exoneration provided by section 269: where the lessee deliberately causes the damage, or where the lessee causes the damage while committing an imprisonable offence. [Read more…]

We are delighted to announce that Crossley has joined Keegan Alexander as an insurance partner.

Crossley brings 35 years of experience specialising in insurance law and insurance practice to Keegan Alexander.
See Crossley’s full profile under “Our People”

Crossley’s contact details follow:

Tel: + 64 9 303 1809
Email: cgates@keegan.co.nz