Professional Liability (Errors and Omissions)

Professional liability insurance is one of the most dynamic sectors of the insurance market because the service economy continues to grow, and the insurance products must continually evolve to meet the market demand. Goldberg Segalla’s Global Insurance Services Group has an insurance coverage practice focused on professional liability policies issued to architects, engineers, insurance agents, lawyers, accountants, health care providers, and other professionals. Insurance companies regularly retain our attorneys to handle their most complex errors and omissions coverage matters nationally.

Our attorneys advise insurers as to their rights and obligations under E&O policies, and assists clients in communicating their coverage positions clearly and precisely to the insureds. Since most E&O policies are “claims made” or “claims made and reported,” we assist in evaluating for our clients whether claims were properly made (or, in some cases, made and reported) within the policy period. In addition, we also advise insurers regarding their options for handling other significant coverage issues, including when and how to negotiate, litigate, and raise legitimate coverage defenses without creating extracontractual exposure.

When disputes cannot or should not be resolved through other means, our attorneys regularly litigate insurance coverage issues under professional liability policies. Coverage issues where we have significance experience include whether a claim involves “professional services,” policy rescission matters, allocation issues, bad faith litigation, and handling appellate matters where the insurer or its insured has already suffered an adverse ruling at trial.

We also assist insurers in policy underwriting and drafting advice. In this regard, Goldberg Segalla attorneys have assisted clients in drafting policy forms and endorsements for a wide range of professional liability policies, including media and technology policies, environmental professional policies, architects and engineers, and other miscellaneous professionals.

Representative Matters

  • We represented the insurer of a cyber charter school, which was sued in a class action over alleged violations of state law related to payment for enrolled students. In addition to filing a declaration judgment action in federal court, we also intervened in the underlying action to submit jury questions and ensure that any verdict would have an impact on the ongoing coverage litigation. After arguing coverage issues in both actions, the underlying class action and coverage action settled, with minimal payment provided by our client.
  • Our client’s insured was sued in numerous whistle-blower lawsuits alleging that it engaged in fraudulent and deceptive business practices in collecting federal funds for numerous educational institutions the insured owned and managed. We were asked to represent the insurer in a federal lawsuit concerning insurance coverage for those underlying lawsuits. We asserted that the claims against the insured fell outside of the educators’ insurance policy. In the end, we obtained dismissal of the case for our client, with no liability for defense and indemnification of the insured.