Insurers are resisting professional indemnity insurance claims related to collapsed advisory firm Storm Financial.

Storm renewed the cover on December 10 last year, a month before the Townsville-based company entered administration with debts of about $80 million.

The insurers – who have not been identified – are claiming a lack of full disclosure at the time the policy was renewed, indicating they will ultimately reject the claims.

Worrells Solvency & Forensic Accountants Partner Raj Khatri confirmed the dispute when insuranceNEWS.com.au approached the liquidator.

“We anticipate issuing a report to creditors in January 2010 and this matter and others in relation to the company will then be fully covered,” he said.