Marsh NZ appoints new director in wake of Bridgecorp ruling

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20 February 2012

Marsh NZ has strengthened its expertise in professional liability following the recent Bridgecorp decision, which has raised questions over directors’ and officers’ (D&O) policies in Australia and New Zealand.

Frederic Boles has become executive director with responsibility for Marsh’s Financial and Professional Services (Finpro) business across New Zealand.

Mr Boles says New Zealand companies face a range of professional liability issues, especially in the wake of the recent Bridgecorp ruling, and he looks forward to helping clients manage these risks effectively.

Bridgecorp was a finance company that went broke in 2007. Its directors called on their D&O policy to fund defence costs, but the company’s receivers asserted a charge over the funds payable under the policy for amounts they intended to claim from the directors. The New Zealand High Court found in favour of the receivers. 

The decision is being appealed, but as it stands it calls into question the ability of insurers to pay out defence costs in some situations. 

The decision is likely to extend to Australia and is forcing insurers and brokers to examine D&O policies and look at new forms of cover.

Mr Boles was previously with Marsh in France, where he was responsible for Finpro’s insurance placement across Continental Europe. He also worked with Marsh UK for nine years.