Insurance Arbitration – successful representation of policyholder

Nater Dallafior represents a globally operating corporation – being the policyholder – against one of its insurers in SCAI arbitration proceedings. The dispute concerns a claim for coverage based on a business liability insurance policy. The value in dispute is USD 50 million. The entire insurance tower consists of various insurance carriers and provides coverage in excess of USD 650 million.

Upon the initiation of the arbitration proceedings in 2020, the insurer raised the objection of lack of jurisdiction, contesting the validity of the arbitration agreement contained in the insurance policy. The insurer's main argument was that the provisional cover note ("insurance binder" or "binding slip") issued prior to the commencement of the policy year contained a clause stipulating the jurisdiction of state courts.

The tribunal bifurcated the question concerning jurisdiction. After two full rounds of submissions (incl. document production), the tribunal rendered a thorough award on jurisdiction in which it fully upheld the policyholder's position, confirming that the insurance policy overruled the provisional cover note and, thus, confirming the validity of the arbitration agreement as agreed in the insurance policy.

The team consists of Roberto Dallafior, Benjamin Schumacher and Tobias Thaler.