Defence costs coverage in Italy
11 August 2022
The Supreme Court in Italy has reversed a previous ruling in relation to cover for defence costs in Italian liability policies. Previously, it was lawful for policies to refuse to provide cover where the policyholder refused to appoint the lawyers or other representatives chosen by insurers.
However, the Supreme Court has now ruled that such clauses are unenforceable, being a violation of article 1917 of Italy’s Civil Code. Article 1917 states that:
“legal costs incurred by the insured to defend against the claim of the injured party shall be borne by the insurer to the extent of one-quarter of the sum insured”.
The only exceptions are where the change is more favourable to the insured, or where the insurer can prove that litigation costs were recklessly incurred.
Underwriters of Italian liability risks should be aware of these new requirements and ensure there policies and claims handling practices comply.
Contact
Tim Johnson
Partner
tim.johnson@brownejacobson.com
+44 (0)115 976 6557
Contact Tim
You may be interested in...
02 July 2024
Legal Update - DORA
EU Digital Operational Resilience Act: Countdown to comply with the January 2025 deadline
27 June 2024
Legal Update
Changing lanes: Automated Vehicles Act 2024 becomes law
27 June 2024
Legal Update
Tobacco and snus use – are insurers asking the right questions?
27 June 2024
Legal Update
What does the draft terrorism (Protection of premises) bill (Martyn’s Law) mean for insurers?
27 June 2024
Legal Update
Court of Appeal upholds decision on Professional Indemnity Policy exclusions in insurer's appeal
27 June 2024
Legal Update
Uninsured driving: The road to liability for insurers and third parties
27 June 2024
Legal Update
Artificial intelligence in insurance: Targeted marketing as a quasi-underwriting function
27 June 2024
Legal Update - The Word
The Word, June 2024
20 June 2024
Legal Update
The benefits of good governance in sport
28 May 2024
Legal Update - Consumer Duty
Updated UK Consumer Wordings Guidance: Browne Jacobson collaborates with the LMA
28 May 2024
Legal Update - Consumer Duty
From products to protection: The rise of embedded insurance
28 May 2024
Legal Update
The European Accessibility Act: Inclusive products and services
28 May 2024
Legal Update
Final FCA anti-greenwashing rule guidance published
28 May 2024
Legal Update - Consumer Duty
The Financial Conduct Authority’s approach to AI regulation
28 May 2024
Legal Update - The Word
The Word, May 2024
03 July 2024
In Person Event
Claims club, Exeter
24 May 2024
Published Article - Consumer Duty
General insurance claims: The Consumer Duty’s easy target?
23 May 2024
Legal Update
Banking Transaction Update — May 2024
22 May 2024
Legal Update - London Market Quarterly
London Market Quarterly, Spring 2024: An eye on what the market needs to know
10 May 2024
Press Release
Browne Jacobson to lead discussions on the future of real estate and infrastructure at this year’s UKREiiF 2024 event
08 May 2024
Legal Update
A reflection of FIMA Connect 2024
30 April 2024
Published Article
English Commercial Court rules against Russian exclusive jurisdiction clauses
24 April 2024
Legal Update
The Baltimore bridge collapse: One of the biggest losses in maritime insurance history?
24 April 2024
Legal Update
The EU AI Act: What does it mean for insurers?
24 April 2024
Legal Update
FCA and FOS set out strategic plans for 2024 and beyond
24 April 2024
Legal Update
The space data revolution
24 April 2024
Legal Update
New guidance on supporting autistic customers for the insurance industry
24 April 2024
Legal Update
Chubb ordered to indemnify SXSW for Covid cancellation
19 April 2024
Legal Update
Understanding the ICO's new fining guidance
18 April 2024
Legal Update
Unravelling the challenges and opportunities in UK sports governance
09 April 2024
Press Release
Browne Jacobson advises European micromobility insurtech Laka on investment from Achmea Innovation Fund
02 April 2024
Legal Update
Cyber-attacks in UK universities: Why failing to prepare is no longer an option
28 March 2024
Legal Update - The Word
The Word, March 2024
06 March 2024
Opinion
Caregivers at work: Navigating new carer's leave regulations
05 March 2024
Legal Update
Commercial Court considers requests for stay or anti-suit injunction where two competing reinsurance wordings
01 March 2024
Opinion
EHRC publishes new guidance on menopause and the workplace
27 February 2024
Legal Update
Parametric flood policies - Insurers no longer in uncharted waters?
27 February 2024
Legal Update
LockBit unlocked: International taskforce takes down major cyber criminal organisation
27 February 2024
Legal Update - Consumer Duty
80% of GAP market pause sales amid Consumer Duty concerns
27 February 2024