E&O

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Broad Insurance Policy Construction Puts False Claims Act Claim Within Coverage for Medical Incidents

Court have always construed the duty to defend more broadly than the duty to indemnify.  That broad construction becomes amplified when coupled with an equally broad construction of the phrase “arising out of” in an insurance policy.  Recently, the Fourth Circuit Court of Appeals found such a broad construction under North Carolina law, leading to … Continue Reading

No Professional Liability Coverage for Bank After DOJ Settlement of Mortgage Certification Violations

Professional liability policies provide coverage for wrongful acts undertaken by the insured in the performance of professional services.  In the medical and legal fields, professional services are generally clear.  In other professional contexts professional services may not be as clear.  In a recent case, the Fifth Circuit Court of Appeals addressed whether professional liability coverage … Continue Reading

A Split Eighth Circuit Affirms Insurer Had a Duty to Defend County Against a 1983 Case

Liability insurance policies, especially directors and officers and other types of errors and omissions policies, often have provisions that deem related acts to constitute one wrongful act.  How that provision applies is fact specific, but its application can make a difference in determining which insurance policy must defend an underlying claim.  In a recent case, … Continue Reading

How Specific Does a Specific Litigation Exclusion Have to Be?

Insurance policies often have general exclusions for known losses or prior acts.  The reason for this is that most insurance is for fortuitous risks–risks that will take place in the future; not risks that already have taken place.  For large policyholders that have ongoing litigation, it is not uncommon for a new carrier to craft … Continue Reading

No Coverage When Claims Relate Back to Notices Prior to Policy Inception

It is pretty common for D&O and E&O and other professional liability claims-made policies to have exclusions that preclude coverage for incidents that took place and were noticed prior to the inception of the policy.  Unless the policyholder has purchased “nose” coverage or has a retroactive date that goes back far enough, a prior noticed … Continue Reading

Errors and Omissions and Directors and Officers Clash Gets Some Clarity From the Second Circuit

Most companies that provide specialized or professional services, like stock exchanges, carry both directors and officers liability insurance (“D&O”) and errors and omissions insurance (“E&O”). These coverages are meant to be complimentary and not overlapping.  D&O covers “wrongful acts” by directors and officers.  E&O covers negligent acts in performing professional services.  D&O policies typically exclude … Continue Reading
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