header-logo header-logo

Holes in the umbrella?

18 January 2007 / Geoff Barrett , Martin Finigan
Issue: 7256 / Categories: Features , Insurance / reinsurance
printer mail-detail

Geoff Barrett and Martin Finigan highlight the dangers of relying on composite insurance

Many large multi-national accountancy firms have attempted to protect themselves from claims by creating umbrella-like organisations. This involves each member firm in their worldwide network being a separate entity—in an attempt to compartmentalise the risk. Each member firm is part of an umbrella operation that manages and maintains the worldwide organisation of member firms that practice under the accountant’s name. The insurance obtained by such firms has been of a composite nature, where the rights of each co-assured under a policy are separate.

In Brit Syndicates Ltd (for and on behalf of Brit Syndicate 2987) v Grant Thornton International [2006] EWCA Civ 1661, [2006] All ER (D) 68 (Dec) last month, the Court of Appeal clarified the extent to which the ultimate umbrella organisation is entitled to be indemnified following misrepresentation/non-disclosure.

Background

Mills & Reeve acted for the insurers who insured Grant Thornton’s member firms around the world under a composite policy. In addition the US umbrella organisation

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
back-to-top-scroll