Legal Insights for the Insured

Category Archives: Professional Liability

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Policyholder Warning: What One Provision Giveth (Defense Costs), Another Provision May Taketh Away

Professional liability insurance policyholders often breathe a sigh of relief when their insurer begins funding the costs of defending against a civil claim or government investigation. That is one of the reasons they bought the insurance in the first place! However, as one policyholder recently learned, just because the insurer advances defense costs doesn’t mean … Continue Reading

Texas Federal Court Clarifies Broad Scope of Professional Liability Policies for Lawyers

Lawyers may be surprised to learn that lawsuits brought by clients challenging something other than purely legal advice or advocacy—such as billing—may not be covered by their professional liability policies.  Interpreting the phrases “professional services” and “legal services” in such policies narrowly, courts in some jurisdictions—including Texas—have historically limited professional liability coverage to claims based … Continue Reading

Third Circuit Holds That Insured Must Reimburse Insurer For Litigation Costs Paid In Excess Of Sub-limit

In CAMICO Mutual Insurance Co. v. Heffler, Radetich & Saitta, L.L.P., the United States Court of Appeals for the Third Circuit recently held that a $100,000 sub-limit for claims involving employee misappropriation, misuse, theft or embezzlement in a claims made accountants professional liability insurance policy applied, requiring the insured to repay litigation costs the insurer … Continue Reading

Federal Judge Concludes Restitution May Be Covered Under Commonly Used Professional Liability Policy Language

A federal judge in Minnesota recently held that “restitution” paid to settle a class action lawsuit was covered under the terms of a professional liability policy.  The court in U.S. Bank National Ass’n et al. v. Indian Harbor Ins. Co. et al. rejected the argument frequently used by directors and officers (“D&O”) insurance carriers that … Continue Reading
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