Lloyd's warns of 'liability crisis'
21/05/2008
Research conducted by specialist insurance market Lloyd's has revealed a feeling among company boards that they are being "increasingly challenged" by litigation.
The organisation has now warned of a "liability crisis" which businesses must prepare for if they are to avoid being adversely affected.
Its survey of the European market reveals that two in three business leaders anticipate spending more time on litigation within the next three years.
The report, entitled Directors in the Dock - is business facing a liability crisis?, adds that new legislation is furthering the issue for many companies.
Lloyd's chairman Lord Levene says: "Litigation is a leveller of modern businesses.
"No matter what their size, location or industry, all businesses are facing increasing liability risks."
The warnings follow advice from risk consultancy Flaxman Partners, which anticipates an upturn in the number of Directors' and Officers' insurance claims in the near future.
In light of the recent turbulence in the financial markets, the consultancy commented that "litigation increases when money and credit is tight".
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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