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Policy Exclusions Professional Liability

Clark Hill PLC

UK High Court ruling underscores cost of broker negligence and clarifies effects of “other insurance” clauses in overlapping...

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A recent ruling from the High Court of Justice (a trial level court) in London, highlights the serious consequences of professional negligence in insurance broking and clarifies how “other insurance” clauses interact with one...more

Rivkin Radler LLP

April 2025 New York Insurance Coverage Law Update

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John H. Fisher and his P.C. represented a client in a medical malpractice action filed on February 15, 2019, alleging that the defendant medical providers failed to provide proper prenatal care to the client, causing the...more

Wiley Rein LLP

No Coverage for Lawsuit Where “Claim” First Made at Time of Pre-Inception Tolling Agreement

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In a win for Wiley’s client, a New York intermediate appellate court, applying New York law, has affirmed that no coverage is available for a legal malpractice lawsuit because the “claim” was first made before the policy’s...more

Sheppard Mullin Richter & Hampton LLP

The California Court of Appeal Interprets the Meaning of “Care, Custody, or Control” in the Context of an Abuse or Molestation...

In 2015, Continental Casualty Company issued a commercial general liability policy to Zongwei Shen dba Nobles Massage Spa. The policy covered Shen (the spa owner) and Zhong Xin (the spa manager and Shen’s wife) for damages...more

Wiley Rein LLP

Law Firm Had Duty to Report Omission, Even Though Clients Promised Not to Sue

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The Iowa Court of Appeals has held that a law firm’s clients’ purported assurance that they would not sue the law firm for its omission in representing them did not obviate the firm’s obligation to notify its claims-made...more

Wiley Rein LLP

New York Federal Court Holds Prior Knowledge Exclusion Applies Only to Known Claims, Not Facts and Circumstances That Could Lead...

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Applying New York state law, the United States District Court for the Northern District of New York held that a professional liability insurer had waived its rescission claims by failing to request additional explanations for...more

Rivkin Radler LLP

New York Insurance Coverage Law Update — Compilation 2023

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The owners hired a general contractor (GC) insured by Amerisure to build a movie theatre, and the GC hired a masonry subcontractor (Sub) insured by Selective under a primary and umbrella policy...more

Carlton Fields

Second Circuit Affirms Ruling That Prior Knowledge Exclusion Barred Coverage for Legal Malpractice Lawsuit

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The Second Circuit Court of Appeals recently affirmed a lower court’s ruling, which declared that North River Insurance Co. had no duty to defend or indemnify its insured in connection with a legal malpractice lawsuit....more

Carlton Fields

Investment Advisory Firm’s Unlawful Copying and Distribution of Industry Publication to Firm Employees Not Covered by Professional...

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A California court recently held that an investment advisory firm’s losses stemming from its alleged copying and distribution of Oil Daily, an energy industry publication, to the firm’s advisers were not covered by investment...more

Carlton Fields

Sixth Circuit Finds Unregistered Security Exclusion Bars Professional Liability Claim

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In Saoud v. Everest Indemnity Insurance Co., the Sixth Circuit Court of Appeals held that an “unregistered security exclusion” barred coverage for various underlying lawsuits under a professional liability policy....more

Wiley Rein LLP

Outside Entity Exclusion Precludes Duty to Defend Claim for Misappropriation of Confidential Information

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The United States District Court for the Northern District of California, applying California law, has held that an outside entity exclusion precluded a professional liability insurer’s duty to defend a claim against its...more

Wiley Rein LLP

No Duty to Defend Lawsuit Alleging Renumeration to which Insured was Not Legally Entitled

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The United States District Court for the Middle District of Florida, applying Florida law, has held that a professional liability insurer had no duty to defend a lawsuit alleging that the insured, a closing agent, wrongfully...more

Wiley Rein LLP

Professional Services Exclusions Bar Coverage for a Pharmacy Technician’s Mistake in Dispensing Medication

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The Western District of North Carolina has held that the professional services exclusions of two different policies issued to a staffing agency negated any duty to defend a lawsuit alleging a pharmacy technician improperly...more

Wiley Rein LLP

Sexual Misconduct Exclusion Eliminates Duty to Defend Civil Lawsuit

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The United States District Court for the Central District of California, applying federal and California law, has held that there is no coverage for a civil judgment against an employee of an insured because the employee’s...more

Wiley Rein LLP

Contract Exclusion Bars Coverage for Deceptive Practices Claims Arising Out of Gym Membership Contracts

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The United States Court of Appeals for the Sixth Circuit, applying Kentucky law, has held that a directors and officers liability policy does not provide coverage for a class action lawsuit brought against a gym alleging...more

Wiley Rein LLP

Prior Knowledge Provisions Barred Coverage for Malpractice Claim Based on Pre-Policy Sanctions and Default Judgment

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The Montana Supreme Court has held that there was no coverage under a lawyers professional liability policy for a client’s malpractice claim because the lawyer knew of and failed to disclose, prior to the insured law firm’s...more

Carlton Fields

Ninth Circuit Applies Willful Violation of Law Exclusion in Professional Liability Policy To Preclude Coverage for Wrongful Death...

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In National Fire & Marine Insurance Company v. Hampton, No. 19-17235 (9th Cir. Oct. 21, 2020), the Ninth Circuit held that a doctor’s guilty plea to the unlawful distribution of a controlled substance barred insurance...more

Wiley Rein LLP

Doctor’s Guilty Plea Establishes Basis for “Willful Violation” Exclusion from Coverage in Wrongful Death Case

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Applying Nevada law, the Ninth Circuit has held that a professional liability insurer did not have a duty to defend or indemnify a doctor for a wrongful death action because the doctor’s guilty plea triggered an exclusion for...more

Wiley Rein LLP

No Coverage for TPA in Claim Arising from Extracontractual Exposure to Insurer

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A federal district court has ruled that a third-party administrator’s professional liability policy does not afford coverage for a claim against the TPA arising from an excess judgment against the TPA’s...more

Wiley Rein LLP

Despite Allegation that Law Firm Was Not Providing “Legal Advice,” Complaint Triggers Duty to Defend Under Lawyers’ Professional...

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A California federal court has held that a complaint alleging that a law firm was providing services in a non-legal capacity nonetheless triggered a duty to defend the firm under a lawyers’ professional liability policy,...more

Lowenstein Sandler LLP

Fintech Company Secures Indemnity Coverage Under Professional Liability Policy for Fraudulent Funds Transfer Claim

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What You Need To Know: - Recent case law is trending favorably for policyholders to secure coverage for computer fraud claims under a wide array of insurance policies. - Because several types of policies may be...more

Pillsbury - Policyholder Pulse blog

Contractual Liability Exclusion Excised from E&O Policy for Professional Services Company

In an important decision in the world of professional liability (including D&O and E&O policies), the Seventh Circuit recently held that a “contractual liability” exclusion—i.e., an exclusion for claims “based upon or arising...more

Carlton Fields

Cow Manure Meets Insurance Law: Seventh Circuit Addresses Breach of Contract Exclusions in Malpractice Insurance

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Errors and omissions (E&O) and directors and officers (D&O) professional liability insurance policies commonly contain breach of contract endorsements that exclude coverage for claims “based upon or arising out of” a breach...more

White and Williams LLP

Eleventh Circuit Defers to Insurer’s Definition of Professional Services

Does an Errors & Omissions (E&O) insurer have a duty to defend its insured mental healthcare provider when the policyholder was not licensed to provide such mental health counseling services? The Eleventh Circuit recently...more

White and Williams LLP

ICO-Related Claims and Insurance Coverage: Questions You Should Be Asking

In this post, we provide a brief overview of initial coin offerings (ICOs), discuss certain recent enforcement actions involving ICOs and highlight potential coverage issues under management and professional liability...more

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