Companies insured by excess commercial general liability policies from the 1960s through the 1980s could be in danger of losing a key insurance asset to cover long-tail liabilities dating back decades. Stronghold Insurance Company (Stronghold) recently announced its intention to seek approval of a Solvent Scheme of Arrangement under the English Law. Stronghold’s proposed Scheme is scheduled for initial review and hearing in the next few weeks and – if approved – could foreclose or significantly reduce coverage available to policyholders.
Companies that purchased excess liability coverage from the London Market during Stronghold’s period of coverage (from 1962 to 1985) could very well be insured under a policy subscribed to or issued by Stronghold. Companies with Stronghold insurance should closely review how the Scheme could affect their rights to coverage. In particular, Stronghold’s insureds likely will have a very brief window – potentially as soon as October 9, 2018 – to assert any objection to Stronghold’s proposed Scheme. Moreover, if the Scheme is approved, insureds will have a limited time to submit a claim for payment – after which they will be forever barred from obtaining any coverage from Stronghold.
Detailed information concerning the proposed Scheme, related procedures and key dates is available at Stronghold’s web site.