Liability Risk and Insurance
Employees’ liability continues
The ruling in
Merrett v Babb
makes professional employees constantly vulnerable to claims against them for advice given on behalf of their employers (see
Case update
, page 8). Such claims can be pursued where the firm has ceased trading and lacks runoff cover, is underinsured or unable
to pay a policy XS or is unable to obtain professional indemnity cover as a result of a coverage dispute.