An Illinois appeals court recently ruled that an attorney who admitted a mistake without his insurer's permission was still owed malpractice coverage because his policy's voluntary payments provision interfered with his ethical obligations — a rare decision that policyholders in other professions should point to when trying to win malpractice coverage, experts say.
"That is a sacrosanct bond that involves both the obligation of the attorney and the right of the client, and the insurance company can't get in the way in an effort to save themselves some money," Diana Gliedman, an Anderson Kill & Olick PC shareholder who represents policyholders in professional liability insurance disputes, said. "I think that it is a great decision, and I think that it's likely to be followed by many other courts."