Jonathan S. Ziss, a partner in Goldberg Segalla’s Professional Liability Practice Group, was interviewed by Reuters in the days following the software glitch that caused Knight Capital Group to suffer massive trading losses.
“They are going to be looking anywhere and everywhere for coverage” provisions that might offset some of their losses, Jonathan told Reuters, noting that the company’s professional liability policy may cover short-term legal and regulatory costs, but that it probably would not indemnify the firm for its own losses because of a software glitch.
“What they need is something to stem the cash bleed that’s going to occur and may already be occurring,” Jonathan continued. “They may find themselves with at least the lubricant of early money to help with the legal spend.”
Read the full article: