GERMANY Law and Practice Contributed by: Rainer Wilke, Ingo Theusinger and Ralph Schilha, Noerr
5.7 Settlements Settlement arrangements for consensual resolu- tion of litigation derived from the crisis is typi- cally based on the nature of the dispute, the parties involved and the specific circumstances. The following are suitable methods for resolving legal disputes in connection with a crisis:
• Immediate notification – companies must notify insurers immediately of any incidents or claims that could trigger insurance cover and ensure compliance with the terms and condi- tions of the policy. • Documentation and reporting – detailed documentation and reporting of the incident or claim so that insurers can properly assess the situation. • Collaborative claims management – continu- ous communication with insurers to effi- ciently manage claims and develop resolution strategies. This involves responding to any requests for additional information or clarifi- cation as well as co-operation in any investi- gation of the insurer. • Risk mitigation and compliance – demonstrat- ing adherence to risk management practices and regulatory requirements, which can enable smoother claims handling. By demon- strating a proactive approach to risk manage- ment, companies can assure insurers that they have taken steps to minimise potential claims risks. Through clear communication and compliance, companies can effectively use their insurance cover to manage crisis-related costs and litiga- tion. 5.9 Reputation Management The term “reputation” refers to the perception and credibility of a company among its stake- holders – ie, shareholders, customers, employ- ees and the public. Reputation can significantly influence the success and sustainability of a company. Proactive reputational management strategies – such as a functional compliance management system – foster stakeholder trust and ensure transparent communication.
• settlement payment; • contract amendment; • injunctive relief; • non-monetary settlements; and • mediation or arbitration.
Non-monetary agreements may include agree- ments to implement changes in procedures and policies to address the issue that led to the crisis or litigation. Settlement agreements must comply with the applicable laws and may require approval from authorities. 5.8 Insurance Common types of insurance include: • cyber liability insurance; and • legal expenses insurance. Further, the scope of insurances may include: • environmental liability insurance; • business interruption insurance; and • specialised crisis management insurance. To manage claims and obtain insurance cover, companies in Germany generally work closely with insurers or insurance brokers. This includes the following. • public liability insurance; • D&O liability insurance;
95
CHAMBERS.COM
Powered by FlippingBook