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Professional Liability Insurance

Wiley Rein LLP

California Court of Appeal Affirms Dismissal of Claims against Excess Insurers for Insureds’ Failure to Allege Exhaustion

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The California Court of Appeal, applying California law, has affirmed a trial court’s decision dismissing claims with prejudice against two excess carriers for the insureds’ failure to allege exhaustion of the underlying...more

Wiley Rein LLP

Georgia Federal Court Determines State Court Judgment Entered After Parties Executed a General Release Is Not “Loss”

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The United States District Court for the Middle District of Georgia, applying Georgia law, has held that an insurer had no obligation to pay a judgment against its insured in an underlying personal injury lawsuit because the...more

Wiley Rein LLP

Contractual Liability Exclusion Bars Coverage Where Lawsuit Against Insured Arises Out of a Contractual Obligation

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The Appellate Court of Maryland, applying Maryland law, has held that an insurer had no duty to defend or indemnify an insured under a professional liability policy containing a contractual liability exclusion for a lawsuit...more

Wiley Rein LLP

No Coverage for Malpractice Suit Where Insured Misrepresented Prior Knowledge of Potential Claim

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A Connecticut state court has held that an insurer owes no coverage to an insured law firm that misrepresented its prior knowledge of a potential malpractice claim to be filed by a former client. Evans & Lewis, LLC v. Nat’l...more

Wiley Rein LLP

Prior Knowledge Provision Precludes Coverage for Known Sexual Assault Under Either an Objective or Subjective Standard

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The Superior Court of New Jersey, Appellate Division, applying New Jersey law, has held that a professional liability policy afforded no coverage for a lawsuit alleging sexual misconduct because the insured had knowledge of...more

Wiley Rein LLP

Business Enterprise Exclusion Bars Coverage for Claim Arising out of Conduct Related to Joint Venture

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The United States District Court for the Middle District of Florida, applying Florida law, has held that a Business Enterprise exclusion in a professional liability policy barred coverage for claims brought against a law firm...more

Wiley Rein LLP

No Coverage for Claim That Related Back to Prior Policy Period

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The United States District Court for the District of New Jersey, applying New Jersey law, granted an insurer’s motion for summary judgment, finding that an insured’s claim related back to a prior policy period when the...more

Wiley Rein LLP

Threat of Bad Faith Does Not Constitute a “Claim” Under Insurance Company’s Professional Liability Policy

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An Ohio federal court, applying Ohio law, has held that a letter threatening a bad faith action against an insured insurance company did not constitute a “Claim” for the purposes of the company’s errors and omissions...more

Rivkin Radler LLP

Insurance Update - April 2024

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Dominance was the theme of this year’s NCAA basketball tournament, with the UConn men’s team winning back-to-back championships and the South Carolina women’s team reclaiming the title with a perfect record. But let’s not...more

Wiley Rein LLP

Second Circuit Determines Letter Threatening Litigation Constitutes a Claim First Made Prior to the Policy Period

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The United States Court of Appeals for the Second Circuit, applying New York law, has held that a letter asserting legal liabilities and threatening litigation constitutes a claim first made prior to the policy period. The...more

Kerr Russell

Before You Sign—Minimizing Medical Director Liability Exposure

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Whether at a hospital, nursing home, surgical center or private office, physicians are encountering “Medical Director” opportunities more frequently than ever before. While physicians may be intrigued by the title,...more

Wiley Rein LLP

Wrongful Business Practices and Wrongful Death Lawsuits Against Nursing Facility Alleging Understaffing Held Not Related Claims

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The United States District Court for the Central District of California, applying California law, has held that wrongful business practices and wrongful death lawsuits against a nursing facility both alleging understaffing by...more

Wiley Rein LLP

No Coverage for Claims arising from Billing Practices under Professional Liability Policy

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The United States District Court for the Middle District of Florida, applying Florida law, has held that a law firm was not entitled to coverage under a professional liability policy for claims involving its allegedly...more

Troutman Pepper

D&O and Professional Liability 2023: A Year in Review

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The past year once again saw a breadth of court decisions addressing a wide variety of directors and officers and professional liability insurance coverage issues. At various levels, state and federal courts across the...more

Rivkin Radler LLP

Insurance Update - February 23, 2024

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In this month’s insurance update, we address: •Whether opioid suits allege an occurrence - •Whether the recurring presence of wild turkeys is “infestation” - •Whether improper copying of an industry publication was in...more

Wiley Rein LLP

Allegation That Officer was CEO of Insured Organization Sufficient to Survive Capacity Challenge to D&O Coverage

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The United States District Court for the Central District of California, applying California law, has held that an underlying pleading sufficiently alleged that an individual was sued in an insured capacity as an officer of...more

Wiley Rein LLP

California Court of Appeal Confirms Investment Advisor’s Unauthorized Copying of Trade Publication Is Not a Wrongful Act in the...

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In a win for Wiley’s client, the California Court of Appeal, applying California law, affirmed the grant of an insurance tower’s motion for summary judgment, finding that an investment advisor’s unauthorized copying of a...more

Marshall Dennehey

New Jersey District Court Affirms Irrelevance of Breach of Contract Claims in Cases Involving Woerner Actions.

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Law Office of Drew J. Bauman v. Hanover Insurance Company, 2023 WL 2238552 (D.N.J. Feb. 27, 2023) - The plaintiffs had maintained a professional liability insurance policy with Hanover from October 2017 to October 2019. They...more

Wiley Rein LLP

Wage and Hour Violation Exclusion Applies to Allegations of Untimely Payments in Connection with Scheme to Underpay Employees

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A Pennsylvania federal court, applying Pennsylvania law, held that a policy’s Wage and Hour Violation exclusion applied to the entirety of underlying class actions that alleged the insured employer schemed to underpay its...more

Wiley Rein LLP

An Indictment is Not a Claim Under Lawyer’s Professional Liability Policy Because It Does Not Demand Relief

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In a win for Wiley’s clients, the Fourth Circuit has held that a federal indictment containing a criminal forfeiture allegation does not constitute a “claim” under a law firm’s professional liability policy because a...more

Rivkin Radler LLP

Insurance Update - December 2023

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Our December Insurance Update features a few firsts from state high courts. For the first time: •The Supreme Court of Hawaii addresses reimbursement of defense costs. •The Supreme Court of Illinois addresses coverage for...more

Wiley Rein LLP

Court Rejects Assumption that Wrongful Acts are Related Based on Inclusion in Single Complaint

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The United States District Court for the Central District of California, applying California law, has held that, based on the initial pleadings, it could not determine in the insurer’s favor whether wrongful acts alleged...more

Wiley Rein LLP

No Coverage for Lawsuit Served on Insured’s Registered Agent Prior to Policy Inception

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In a win for Wiley’s client, the U.S. Court of Appeals for the Eleventh Circuit, applying District of Columbia law, affirmed judgment on the pleadings that no coverage is available for a lawsuit because the “claim” was first...more

Wiley Rein LLP

Lawsuit not a “Related Claim” to Earlier Demand Letter, but Policy Rescinded Based on Material Misrepresentations in Application

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The United States District Court for the Middle District of Florida has held that an insurer was entitled to rescind a professional liability insurance company where the insured architecture firm made multiple material...more

Carlton Fields

Munich Re Prevails in Alabama Reinsurance Dispute

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A federal court recently agreed with Munich Re that it was not obligated to reimburse an insurer for losses and fees the insurer incurred in litigation with its professional liability carrier regarding a bad faith claim...more

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