Deceptive Advertising Claim Does Not Allege "Covered Professional Service"

Applying Georgia law, the U.S. Court of Appeals for the Eleventh Circuit has held that an E&O policy issued to a medical practice did not respond to a claim alleging violations of a state unfair and deceptive trade practices statute because the claim did not allege wrongdoing in connection with a "covered professional service." Elite Integrated Medical, LLC v. Hiscox, Inc., 2022 WL 1740098 (11th Cir. May 31, 2022). The court also held that an exclusion for false, deceptive, or unfair trade practices provided an independent basis to preclude coverage.

The insurer issued an E&O policy to a medical practice that provided regenerative medicine products and services to patients. The policy provided specified coverage to the medical practice for claims made against the insured "alleging a negligent act, error, or omission in your professional services performed on or after the retroactive date." The policy defined "covered professional services" as conduct "[s]olely in