D&O claims 'are in the pipeline'

20/03/2008

An increased number of directors' and officers' (D&O) insurance claims is likely in light of the recent sub-prime investments crisis, it has been claimed.

Writing for Mondaq, David Abbott of legal practice Barlow Lyde & Gilbert notes that "hurt" is currently being felt in the reinsurance market.

He notes that, should a fund collapse, resultant D&O claims may not be handled in aggregate.

"An attempt to aggregate D&O losses, auditors' and other advisers' losses following a particular fund collapse may be difficult," Mr Abbott states.

His comments follow warnings that expert testimony may be harder to find in light of the sub-prime crisis.

Nik Carle, partner at the Nottingham office of legal firm Browne Jacobson, recently predicted "a renewed period of recrimination and claims-making" for the secured lending sector.

PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2008 Adfero Ltd.

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