Directors and officers insurance: exclusion for insolvency

In AIG Australia Ltd v Kaboko Mining Ltd [2019] FCAFC 96, an appeal from the decision of McKerracher J in the Federal Court of Australia [2019] Lloyd’s Rep IR 515, the preliminary issue was the scope of an insolvency exclusion in a D&O liability cover whereby claims against the directors related to the company’s insolvency were not covered.

Kaboko : the facts