Reed Smith Client Alerts

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. 

Authors: James C. Schad

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.