Financial losses are generally complex – not just in terms of liability, but also, in particular in terms of cover. It is not uncommon for “off-the-peg” insurance products to cause problems when it comes to handling claims. In this case, mistakes are usually already made at the underwriting stage.
As well as gathering its own experience in handling financial losses, FINLEX also has access to a specialist network of experts and lawyers it can consult for advice on liability and cover-related issues. This network also includes defence lawyers. The main thing the lawyers in the network have in common is that they basically never act on behalf of the insurer.
FINLEX will also be happy to assess “external” D&O claims, offering a second opinion. However, the claims service is primarily available for policyholders and cooperative partners supported by FINLEX.
D&O claims in Germany are up to 80 percent internal liability claims. These claims are characterised by the fact that the company that sustains the damage makes a claim against one of its officers, usually a director or chief executive. If the officer is still employed by the policyholder, tensions between the parties are almost inevitable. The legal nature of D&O insurance as a contract with a third party beneficiary becomes fully apparent at this stage. The insurer supports the policyholder and the chief executive in offering a defence against the claims made.
Internal liability claims often entail an emotional aspect. Signs of “internal wrangling” are often apparent. It can be beneficial for the parties to have a go-between when claims are processed in order to avoid the delays frequently encountered. This monitoring is part of the service offered by FINLEX.
FINLEX provides support before a claim is made, i.e. before claims are pursued, in order to avoid possible problems when a claim is processed (e.g. breach of notice requirements and other possible breaches of obligation). Claims should be processed with the aim of resolving any disputes as quickly and smoothly as possible. This makes it possible to avoid unnecessary escalations and protects the manager and the company from negative headlines.