suing loan company after they breached their own contract

[cul8rm8e]

Just wondering if a lender of money for property development purposes must hold liability insurance to cover contract breaches by themselves.

Thanks

 

[cul8rm8e]

Comments please

 

[smallclaimsassistance]

I don't know but I doubt it. Breach of a contract is unlikely to be negligent, and is more likely to require intent, or at least conscious omission. I can't see any insurer providing cover for intentional breaches of contract.

This is surely immaterial however - a finance company in the business you describe is surely likely to have the funds to satisfy any judgement obtained against them

 

[cul8rm8e]

Not if there never was any intention to be trading long enough and or didnt expect things to backfire.