Tolling Agreement Insurance Coverage

1. Consider the scope and duration of toll agreements. Finally, the Tribunal decided that the exclusion and exclusions of the Directive for “any claim arising from the activities of an insured person. Partners, senior managers, directors or employees of any…. The entity, business or business that is not that of the aforementioned insured” and “all claims that are asserted by or against or in connection with a business. . . . which are owned by an insured person controlled, operated or managed directly or indirectly by an insured in a non-fiduciary capacity`. This mutual fear helps to bring the parties together and formally settle the issue. Since the agreement is more likely under the toll agreement, the parties enjoy the benefits of litigation (threat of a possible cash judgment against the defendant) without actually incurring litigation and incurring costs.

The insurer then issued a professional liability policy to the law firm. In the relevant parts, the policy excluded coverage of: (1) “all claims arising from the activities of an insured are. Partners, senior managers, directors or employees of any…. the body, partnership or business that is not that of the designated insured”; (2) “all claims that are asserted by or against or in connection with a business. . . . is owned by an insured who is controlled, operated or managed directly or indirectly by an insured in a non-fiduciary capacity`; (3) “all claims resulting from acts, errors or omissions that occurred before the date of entry into force of that insurance, if an insured person knew or could reasonably have foreseen, at the time of entry into force, that such acts, errors or omissions could form the basis of a claim[]”. While toll agreements are useful tools, they have potential drawbacks. First, consider whether the court has introduced a date decision with a time limit for counter-claims and the potential conflict of that time with your toll agreement. If your client has a contractual or implied right to compensation and the co-accused has not agreed to compensate your client, your client may want to be clear on the issue of compensation before the trial. So, if you think you might soon be a party to a lawsuit, you should consider buying some time with a toll deal.

You get some of the benefits of a process strategy without any cost. The toll agreement must indicate how long the parties wish to suspend the limitation period. . . .