How do you apportion a claim under a liability policy?
How do you apportion a claim under a liability policy? The answer, according to the UK Court of Appeal, is you don’t. The Court of Appeal handed down judgement today in the much talked about Standard Life Appeal (ACE European Group & Ors v Standard Life Assurance Limited). Having been ordered to pay more than £100m to Standard Life by the High Court, Standard Life’s professional indemnity insurers took the case to the Court of Appeal. In firmly denying that appeal today, the Court of Appeal provided important clarification as to how liability insurance policies work.
Standard Life’s initial insurance claim related to a £2.2bn pension fund (the Pension Sterling Fund). Following the collapse of Lehman Brothers and onset of the credit crunch certain assets in which the fund had been invested (Asset Backed Securities and Floating Rate Notes) experienced losses with the result that the fund lost approximately 5% of its value (a little over £100m). Standard Life chose to reverse the effect of the fall by injecting £100m into it. Standard Life subsequently made a claim for £100m under its professional indemnity insurance policy on the basis that its actions averted potentially larger losses and therefore fell within the definition of “mitigation costs” under the policy. Insurers denied cover and challenged Standard Life’s interpretation of the policy on a number of grounds…
If you are registered and logged in to the site, click on the link below to read the rest of the Addleshaw Goddard briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Addleshaw Goddard
News from The Lawyer
Briefings from Addleshaw Goddard
This month’s roundup of developments affecting banks, wealth managers, brokers and funds.
Delay is a common problem in construction projects and can have costly implications. Before electing to terminate on grounds of contractor delay, there are a number of factors that should be considered.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
Could Slater & Gordon achieve its stated aim of becoming a top consumer brand by acquiring Pannone?