Given the specific wording of insurance policies and the fact that the deeds of access and indemnity often use general wording, it is clear that there are some forms of liability against which a company will be required to indemnify its directors under the deed of access, insurance and indemnity where the company will not be covered by insurance.
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One example is when a director seeks legal advice in anticipation of a claim, which may or may not be made against the director in the future. The D&O policy will only respond to cover legal costs once the claim is made. A gap may also occur because the insurance policy provides cover for a maximum sum whereas the indemnity offered by the company is unlimited.
You might also be interested in The Chairman’s Red Blog, which is a supporting resource for the book.
Until next week.