Posted in Financial Law, Insurance Law

Insurance Is the Hot New Way to Avoid Taxes

Plot: an investor wants revenues and no taxes to pay. He purchases a  private-placement life-insurance policy. The insurance company plans investments in alternative assets such as hedge funds, where profits are taxed as “capital gains”, but, since these involve an insurance company (subject to certain restrictions), the dough is tax-free.

Happy ending: No levies on death benefits

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Posted in Insurance Law

A quick guide to The Enterprise Act 2016

Following the despicable outcome of  Sprung v Royal Insurance (UK) Ltd  (late payments for 4 years and insured out of the business as a consequence), the Insurance Act 2016 introduces section 13A “‘(….)if the insured makes a claim under the contract, the insurer must pay any sums due in respect of the claim within a reasonable time’”.

Applicable to any insurance contract on or after May 4, 2017.

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Posted in Insurance Law, IT Law

Cyber liability: how can businesses protect themselves against underestimated cyber risks?

Some nice considerations on cyber-coverage. Insurance policies generally do not cover:

  • the costs of restoring the data, the costs of any reputational damage and claims from third parties
  • (in case of Traditional business interruption insurance) losses suffered if an IT system fails as a result of a virus or other cyber-attack.

What should a proper cyber-insurance policy cover:

  • direct losses (computer restoration and data recovery, business interruption from systems failures, reputational damage arising from a breach of data that results in loss of intellectual property or customers, theft of money or digital assets through theft of equipment or electronic theft)
  • claims by third parties (investigation, defence costs and civil damages associated with security and privacy breaches +customer notification expenses when there is a legal or regulatory requirement to notify them of a security or privacy breach + multi-media liability, including investigation costs, defence costs and damages arising from defamation, breach of privacy or negligence in publication in electronic or print media)

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