Hanover Finance & Insurance Cover


By a judgment 30 September 2013 the Court of Appeal dismissed an appeal by Hanover Group Holdings Ltd against a High Court decision about its insurance cover. The Court of Appeal decision is Hanover Group Holdings Ltd v AIG Insurance New Zealand Ltd [2013] NZCA 442.  Hanover had a directors and officers liability insurance policy with AIG which provided some insurance cover for liability arising from statements in prospectuses.  There was a dispute about the extent of insurance cover AIG provided.  AIG says that it was limited to a specific dollar amount and certain methods of capital raising.  Hanover said the insurance cover was what it termed “full prospectus” cover.  The Court of Appeal agreed with the High Court and decided the insurance cover was limited.