In the case, the liquidators failed to include claims beyond insolvent trading in an initial demand, which was sent to the insurer within the insurance policy’s period of coverage. A broader range of director, common law and fiduciary breaches, submitted by the liquidator’s former legal representatives to the insurer outside the policy’s coverage, was declined by the insurer and underwriter.
The NSW Supreme Court upheld the insurer and underwriter’s decision to decline the insurance policy claim.
Hannah Griffiths, an expert in corporate insolvency, said: “While the majority of the judgment focuses on the scope of insurance policy clauses, notification of circumstances and indemnity issues arising throughout this particular…