Directors’ and officers’ insurance: costs incurred in investigations and proceedings

The decision of Hargrave J (Melbourne Commercial Court) in Hird v Chubb Insurance Co of Australia Ltd [2016] VSC 174 is one on the interpretation of the representation and defence costs provisions of a directors’ and officers’ liability policy. The court refused to follow US cases involving similar wordings. The drafting of the policy is quite specific, but the judgment demonstrates the sorts of issues that arise where there is a preliminary investigation into a director’s conduct and how this particular form of wording dealt with them.

Hird : the facts