Insurance Newsletter July 2014

There are many insurance products available to persons interested in covering their risks. Product and public liability insurance as well as D&O and E&O insurance are firmly established in liability insurance. There are other insurances, for example breach of trust insurance, kidnap & ransom insurance and the new cyber policies.

Due to the variety of policies, it is necessary to coordinate the cover provided by each. Subsidiarity clauses
present one method of doing so. If, however, a number of insurance policies contain subsidiarity clauses affecting the same insured interest, the question of resolving any conflict between them arises. By judgement of 19.02.2014, the Federal Court of Justice decided that conflicting so called simple subsidiarity clauses cancel each other out. In addition, there are also so called qualified subsidiarity clauses which could be in conflict with other subsidiarity clauses. The legal consequences and possible solutions for this event are in dispute. The parties should therefore place great value on precise wording of the subsidiarity clauses.

In addition to the editorial in this regard, the newsletter includes an overview of new judgements, legislation and notices as well as our insurance calender.

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