Burns Anderson clients lost their claim in the commercial court last week following a long battle with professional indemnity insurer Liberty Mutual. 99 claimants tried to claim against the Burns Anderson professional indemnity insurance policy.
The investors losses totalled more than £ 20 million and followed advice by an appointed representative of Burns Anderson to invest in unregulated collective investment schemes. The losses vastly exceeded the limit of indemnity of the insurance policy, reportedly an aggregate amount of £ 2 million.
Liberty sought to avoid paying the claim on the basis that the risk had been unfairly represented to them and that the claims had only been made after the policy had already expired. The Judge decided in favour of Liberty.
Burns Anderson went into administration in 2012.