Insolvency, Nonrenewal, and Claims: Strategies for Post-Policy Period Coverage under Claims-Made Policies

Clients often call when a claims-made liability insurer does not intend to renew an expiring policy. Usually, the call is about directors and officers (D&O) liability insurance, but it might also be about fiduciary, employment practices, or professional liability insurance. An insurer may choose to non-renew for various reasons. The Read More

Beware of Sublimits!

Sublimits are one of the most common sources of consternation for our business clients. A “sublimit” is a lesser insurance limit of liability that applies to a specific type of loss and is included within the larger, generally applicable, limit. Here are some common examples: a fiduciary liability policy may Read More

Does Your Professional Liability Policy Cover All of Your Business’s “Professional Services”?

“Professional liability insurance,” which is also called “errors and omissions” (E&O) liability insurance, typically provides coverage for defense costs and settlements or judgments attributable to claims based on “Professional Services.” “Professional Services” is typically a defined term limited to services performed for a third-party for compensation. In addition, the Professional Read More

Should I Cash the Insurer’s Check? Update

In an April 10, 2019 post, Katie Bechina and I explained how cashing the insurer’s check might eliminate rights to additional insurance proceeds under a legal doctrine called¬† “accord and satisfaction”. See [permalink] In short, we said that, if the insurer and the insured have a bona fide dispute and Read More

What’s the difference between the “Employee Benefits Liability” coverage under a CGL Policy and coverage under a Fiduciary Liability Policy?

Commercial General Liability (CGL) insurance often include an “Employee Benefits Liability Coverage” endorsement (see, e.g.,¬†ISO CG 04 35 03 05). The endorsement grants coverage for damages attributable to any negligent act, error, or omission in the “administration” of an “employee benefit program.” The coverage under this endorsement is similar to, Read More