We explore and analyze current issues and relevant topics to help accountants, attorneys, architects and engineers, insurance agents and real estate brokers avoid a professional liability case.
Insurance policies covering professional liability risks commonly afford coverage with eroding limits - such that the insurer’s payment of legal fees and expenses reduces the policy limits available to pay a settlement or judgment - and require an insured’s consent to settle.
In Ill. Union Ins. Co. v. US Bus Charter & Limo Inc., 291 F. Supp. 3d 286 (E.D. N.Y. 2018), the United States District Court for the Eastern District of New York addressed the scope of coverage for alleged violation of the Telephone Consumer Protection Act (TPCA). One of the main issues presented was whether a TCPA violation was within the scope of the insurance policy’s coverage for performance of professional services and travel agency operations.
Occasionally, you will read about a legal case that is a comedy of errors. In such cases you’re reminded of cartoons where a character has a bucket fall on his head, then trips and steps on a rake, which immediately leaps up and hits him in the face, before stumbling two more steps into a window and then blindly stepping out of the way of an anvil about to fall on his head.