Case study: positive directors and officers’ liability claim outcome
Published 15 July 2021
Defending liability claims can involve a number of external entities. The question that arose in this case was whether the cost of meeting the requirements of the investigation into liability could be claimed under the policy – and the Gallagher claims advocate intervened to ensure that they did. Here’s what happened in this case involving a recreational ride.
Our client was investigated by WorkSafe Victoria for an incident involving a child falling from a recreational ride and injuring their ankle. Their investigation focused on whether the ride was sufficiently safe to be suitable for the public. Our client made a claim for the costs of responding to the investigation.
These included engaging an engineer to assess the ride and provide certification of its safety. The insurer denied the claim for the engineer’s fee as compliance costs required to satisfy the WorkSafe Victoria improvement notice.
Through swift engagement with solicitors and consultant engineers to represent their interests our client was able to avert a more protracted investigation or prosecution. The Gallagher claims advocate presented the case that obtaining expert opinion did fall within the ambit of defence costs because this was exactly what was required to provide evidence as to the safety of the ride. Without it the client could have been prosecuted and the policy would have been required to respond to a much larger bill for defence costs.
The Gallagher difference
The Gallagher claims advocate understands the particulars of how a policy should respond to defence costs and legal fees. Our practical and common-sense application of the facts to policy response and our efforts resulted in a complete turnaround in the insurer’s position.
We pride ourselves on our claims service
Part of our commitment to building business confidence is fighting for what’s right, and supporting clients through claims is one of our key pillars of business practice.
Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective.