Latest Case Law On Coverage Issues Affecting Professional Liability And Director & Officers Insurance

Originally published in Mealey’s Litigation Reporter

Professional Liability and Directors & Officers insurance policies are generally claims-made policies that restrict coverage to the policy period in effect at the time the claim is asserted against the insured, irrespective of when the alleged damage or injury occurred; or claims-made-and-reported policies, which, besides requiring claims be asserted during the policy period, additionally require the insured report the claim to its insurer during the policy period or the policy's extended reporting period. Such policies provide an insured with a lower cost insurance product than afforded by an "occurrence"-based policy, because the policies allow an insurer to fix within the policy period any potential or actual claims to which the policy may apply.