image

Professional Liability Insurance Recovery

Overview

Professionals live with the knowledge that every job and client brings with it the potential for great reward . . . and the possibility of a crippling lawsuit.  Professional liability insurance (also known as errors & omissions or malpractice insurance) is intended to provide peace of mind and protect against claims of malpractice.  Too often, however, professionals are told by their professional liability carriers that their claims are not covered, leaving them with two bet-the-company battles on their hands.  Many companies simply do not survive.

Anderson Kill’s professional liability insurance recovery group represents lawyers and law firms, architectural and engineering firms, accountants and accounting firms, brokers, real estate professionals, hospitals, financial institutions and more to obtain the defense and indemnification promised by their professional liability insurance policies so they can stop fighting and get back to the business of doing business.  We also work with in-house legal departments and general counsel looking to maximize recovery under Employed Lawyers’ Professional Liability insurance policies.

Experience

  • We represent a software support provider seeking insurance coverage under its excess errors and omissions insurance policies. The excess companies “follow form” to a primary insurance policy with limits of $10 million that was found last year to have defense obligations. Specifically, in January 2021, the primary insurance company commenced a declaratory judgment action against the policyholder, seeking a declaration that it has no obligation to cover a third-party claim. In June 2021, the policyholder filed a motion for partial summary judgment on the duty to defend. The insurance company opposed it and filed a counter-motion, seeking a declaration of no coverage. The policyholder opposed the counter-motion and filed a motion to strike extrinsic evidence on which the insurance company relied. In August 2021, the state court in Nevada granted all three motions in the policyholder’s favor. It ordered the insurance company to honor the duty to defend, granted the motion to strike and denied the insurance company’s motion for summary judgment. The following month, the insurance company filed a motion to certify the three rulings as a final judgment, for purposes of filing an interlocutory appeal. In October, following a full briefing and argument, the Court denied that motion as well. The action was resolved in March 2022 through the remaining insurance company’s decision to withdraw all remaining claims with prejudice and to forego an appeal. In 2022, the policyholder filed a coverage action in Illinois against its five excess insurance companies. That action is proceeding through litigation.
  • We represented an investment management company in two separate disputes under its professional liability policies. The retention arose from a recommendation to the investment management company by the opposing counsel in a matter in which we represented a national railroad company. That counsel recommended Anderson Kill to the investment management company when the recovery of its own legal fees was at stake: a vote of confidence from a professional adversary that we greatly appreciated. Anderson Kill assisted the client in resolving both matters by settlement through mediation, at minimal cost for the client. Both of the settlement amounts substantially exceeded the amounts that were under discussion prior to our retention.

Counseled partners of an accounting firm about right to coverage after discovery that one partner had allegedly engaged in wrongful acts, leading to civil litigation and criminal investigation.

Represented architectural firm seeking coverage for alleged malpractice arising out of the design of a multi-story building; insurance company denied coverage, arguing that the claim was related to a prior claim alleging a different injury to a different part of the building.  After Anderson Kill filed a summary judgment motion arguing that the two claims were not related, the insurance company agreed to provide a defense and indemnification.

Represented a European technology services company in London arbitration, as well as related court proceedings in the U.S. and U.K., in connection with allegations that the client misrepresented the functionality of its software products.

Represented financial institution seeking coverage for fines mandated by an OCC-issued Consent Order under a Bankers Professional Liability for Financial Institutions Policy.

Counseled a financial institution on coverage in connection with alleged misrepresentations in the marketing and sales of securities.  The client sought coverage for investor lawsuits and FINRA arbitrations, shareholder class actions, and regulatory investigations and proceedings.

Successfully represented a law firm whose professional liability insurance company declined coverage for multiple malpractice cases brought against the firm on the ground that if a partner knowingly commits malpractice, the firm as an entity will be deemed to have knowledge of the malpractice, resulting in a published decision holding that one employee’s knowledge of his own wrongdoing will not necessarily be imputed to the firm.

Successfully represented lawyer at mediation, convincing malpractice insurance company to contribute sufficient funds to settle underlying malpractice case even though insurance company had disclaimed coverage and stated it would not contribute towards settlement.

Events

Debunk a Myth: Defense Costs for Many Consumer Class Actions Covered by General Liability Insurance
  • Finley T. Harckham
  • /
  • April 17, 2018
  • /
  • Henry B. Gonzales Convention Center, 900 E. Market Street, San Antonio, TX
image

Publications

HOW 9TH CIRC. APPROACHES ‘RELATED CLAIMS’ INSURANCE DISPUTES
  • Law360
image
PRIOR KNOWLEDGE EXCLUSIONS IN E&O INSURANCE POLICIES: WHAT DOES ‘KNOWLEDGE’ REALLY MEAN?
  • Policyholder Advisor & Alert
image
DO INSURANCE POLICIES COVER THE COST OF RESPONDING TO SUBPOENAS?
  • American Bar Association, Insurance Coverage Litigation Committee, Practice Points
image
WHY GENERAL LIABILITY COVERAGE IS OFTEN NOT ENOUGH
  • Construction Executive
image
4TH CIRCUIT: EMPLOYEE’S LIABILITY COVERED BY INSURANCE HELD BY BOTH EMPLOYMENT AGENCY AND HOSPITAL
  • Policyholder Advisor & Alert
image
NEGOTIATING CONDUCT EXCLUSIONS IN D&O AND E&O POLICIES
  • Corporate Board Member
image
PROFESSIONAL LIABILITY POLICIES AND PRIOR KNOWLEDGE
  • Policyholder Advisor & Alert
image
MAKE SURE YOUR PROFESSIONAL LIABILITY INSURANCE DOESN’T END BEFORE IT STARTS
  • From the Desk of Anderson Kill Philadelphia
image
PANAMA PAPERS TAKEAWAY FOR FINANCIAL INSTITUTIONS: CHECK YOUR D&O AND E&O INSURANCE
  • Policyholder Advisor & Alert
image
D&O COVERAGE IN A CYBER WORLD
  • Policyholder Advisor & Alert
image
INSURANCE 101: PROFESSIONAL LIABILITY POLICIES AND PRIOR KNOWLEDGE
  • American Bar Association, Section of Litigation, Insurance Coverage Litigation
image
E&O GOES IN-HOUSE: EMPLOYED LAWYERS PROFESSIONAL (ELP) LIABILITY COVERAGE MAY HELP TO PROTECT CORPORATE COUNSEL
  • Metropolitan Corporate Counsel
image
THREE WAYS TO ENSURE THAT YOUR HEDGE FUND INSURANCE COVERAGE WILL BE THERE WHEN YOU NEED IT
  • Corporate Counsel
image
NOVELL V. MICROSOFT: WHY TECH COMPANIES BUY E&O INSURANCE
  • Anderson Kill White Paper
image
PROFESSIONAL LIABILITY COVERAGE FOR KNOWING, INTENTIONAL AND CRIMINAL ACTS
  • Corporate Counsel
image
SUBPRIME LENDING LITIGATION: IS THERE INSURANCE COVERAGE?
  • Real Estate Finance Journal
image
INSURANCE COVERAGE UNDER D&O AND PROFESSIONAL LIABILITY POLICIES: WATCH YOUR INSURANCE COMPANY’S FUZZY MATH
  • riskVue
image
SUBPRIME LENDING LITIGATION AND INVESTIGATIONS: INSURING AGAINST THE COSTS
  • Complinet
image
PURSUING “PROFESSIONAL” COVERAGE UNDER CGL POLICIES: HANDLING THE PROFESSIONAL SERVICES EXCLUSION
  • The John Liner Review
image

People

image
Luma S. Al-Shibib

Shareholder , New York

image
image
Thomas Dupont

Attorney , New York

image
image
Mark Garbowski

Shareholder , New York

image
image
Diana Shafter Gliedman

Shareholder , New York

image
image
Marshall Gilinsky

Shareholder , Boston, Denver, New York

image
image
Joshua Gold

Shareholder , New York

image
image
Cort T. Malone

Shareholder , New York

image
image
William G. Passannante

Shareholder , New York

image
image
Edward J. Stein

Deputy General Counsel , Stamford

image
image
Allen R. Wolff

Shareholder , New York

image
Key Contact(s)
image
Diana Shafter Gliedman
View Moreimage
image
Grant E. Brown
View Moreimage

© Copyright 2024 by Anderson Kill P.C.