LegalAI[Space]

Insurance · Insurance fee-earner, broker-facing counsel, in-house claims lead

Read a policy wording for a coverage question

A manufacturer has suffered a loss following a supplier's failure and wants to know whether its business interruption cover responds. The review traces the operative clause, the exclusions and the conditions in the order they actually apply.

First draft
A coverage position with the wording quoted comes back from one run, ahead of the claim meeting.

The problem

Coverage questions are answered by reading the policy in the wrong order. People start with the exclusions, or with the schedule, and never establish whether the operative clause is engaged at all. Extensions carry their own sub-limits and their own conditions, and a condition precedent breached at notification can end the discussion regardless of the rest.
  1. Step 01 of 05

    Add the policy and the loss papers

    The policy wording, the schedule, the endorsements, the broker's summary and the client's loss narrative go on one matter.

    Matters · Project Halcyon · SPA warranties and disclosureOpen

    Project Halcyon: SPA warranties and disclosure

    Buy-side warranty review, disclosure analysis and cited due-diligence grid.

    Client
    Halcyon Bidco Ltd
    Reference
    WC-2026-0412
    Practice area
    Corporate / M&A
    Jurisdiction
    England and Wales
    Responsible partner
    E. Vance
    No conflict check on file.

    Chat, on this matter

    Compare warranties with the disclosure letter.

    Three high-priority exceptions require action: the unregistered charge, the change-of-control right and the tribunal claim.

    Send a message… (@ to mention tools)BalancedPrepare for
    1. 25 Aug

      Disclosure exceptions matrix

      Chat

    2. 21 Aug

      Disclosure exceptions matrix

      Run · completed · 560 credits

    3. 18 Aug

      Project Halcyon: Disclosure Letter

      Document · indexed

    4. 16 Aug

      Project Halcyon: Share Purchase Agreement

      Document · indexed

    5. 4 Aug

      Matter opened

      Opened

  2. Step 02 of 05

    Trace the coverage in order

    Prepare for: Work-Stream Memo. The operative clause is tested first, then the extension relied on, then the exclusions, then the conditions, each with the wording quoted.

    Agents · Contract Agent · New runMatter: Northgate · senior associate hire

    Agent

    Jurisdiction

    Prepare for

    Deliver as

    Instruction

    What should the agent look for?

    Documents

    Drop a contract, or pick one from the matter

    Also on the matter

    • Offer_letter_v3.pdf2 pages
    • Staff_handbook_2025.docx61 pages
    • Board_minute_14_Aug.pdf3 pages
    Platform model · zero data retention · audit register on
  3. Step 03 of 05

    Read the extension analysis

    The supplier extension is engaged but carries a named supplier requirement, and this supplier is not named in the schedule.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    6 items need your confirmation14 authorities · Where we looked

    Senior Associate Employment Contract: English Law Review

    Summary

    1. 1.

      Clause 9(c), non-competeHigh

      The 12-month prohibition on working for any law firm anywhere in the UK, Ireland or EU, in any capacity, is almost certainly wider than reasonably necessary and therefore unlikely to be enforceable.

      Tillman v Egon Zehnder Ltd [2019] UKSC 32
    2. 2.

      Clause 11, data and monitoringHigh

      Blanket contractual consent is not an adequate basis for general employment processing, special-category data or unrestricted monitoring.

      UK GDPR, Arts 6 and 9
    3. 3.

      Clause 4, holiday carry-overHigh

      The unconditional five-day cap conflicts with mandatory carry-over rights where sickness, statutory leave or employer failure prevents leave being taken.

      Working Time Regulations 1998, regs 13 to 13A
  4. Step 04 of 05

    Check the conditions

    The notification condition is a condition precedent on its wording, and the memo compares the notification date with the date of discovery on the file.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    6 items need your confirmation14 authorities · Where we looked

    Senior Associate Employment Contract: English Law Review

    Summary

    1. 1.

      Clause 9(c), non-competeHigh

      The 12-month prohibition on working for any law firm anywhere in the UK, Ireland or EU, in any capacity, is almost certainly wider than reasonably necessary and therefore unlikely to be enforceable.

      Tillman v Egon Zehnder Ltd [2019] UKSC 32
    2. 2.

      Clause 11, data and monitoringHigh

      Blanket contractual consent is not an adequate basis for general employment processing, special-category data or unrestricted monitoring.

      UK GDPR, Arts 6 and 9
    3. 3.

      Clause 4, holiday carry-overHigh

      The unconditional five-day cap conflicts with mandatory carry-over rights where sickness, statutory leave or employer failure prevents leave being taken.

      Working Time Regulations 1998, regs 13 to 13A
  5. Step 05 of 05

    Sign off with the arguments both ways

    The partner reviews a memo that sets out the insurer's likely position as well as the client's, and ticks the items on the evidence still needed.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    • Replace the UK/Ireland/EU non-compete with a 3 to 6 month restriction tied to competing corporate-law work.

    • Replace blanket data consent with a lawful-basis clause and a separate monitoring notice.

    • Remove the five-day carry-over cap and reference the statutory carry-over rules.

    • Narrow the client non-solicit to clients dealt with in the final 12 months.

    • Add an explicit working-time opt-out withdrawal mechanism.

    • Confirm the bonus clause states the discretion is exercised in good faith.

What comes back

A document, not a transcript.

  • A coverage trace in order, from operative clause through extension, exclusion and condition.
  • The named supplier requirement in the extension, with the schedule entry that does not match it.
  • The notification position, with the date on the file set against the condition's wording.
  • The insurer's likely arguments written out alongside the client's, rather than only one side.

Authorities it checks

  • Insurance Act 2015, s 11
  • Financial Conduct Authority v Arch Insurance (UK) Ltd [2021] UKSC 1
  • Arnold v Britton [2015] UKSC 36
Every source it may cite

What it does not do

  • It does not quantify the loss, which is an accountant's exercise the memo points to.
  • It does not notify the insurer or correspond with the broker.
  • It does not treat an arguable coverage position as a settled one, and it says which way each point could go.

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