Insurers are bracing themselves for billions of dollars of claims because of legal action over the coronavirus pandemic.LitigationLiabilityExcess & Surplus Lines
Industry experts say that shareholders and creditors in the US and other countries will soon start suing company managers over the way they have handled the crisis, and that insurance policies will bear much of the brunt.
“There would be very significant losses that could be claimed,” said Beth Thurston from insurance broker Marsh.
“Class action lawsuits have resulted in [claims] of tens, if not hundreds, of millions of dollars in the past.”
Companies buy directors and officers liability insurance, known as D&O, to cover themselves for the possibility that managers could be sued by shareholders, employees or customers.