No Coverage Under Primary Policy For Potential Claim Reported During Extended Reporting Period Or Under Excess Policy Based On Applicability Of "Retroactive Date" Exclusion

The United States District Court for the Eastern District of Michigan, applying Michigan law, granted a primary insurer's motion to dismiss, determining that a professional liability policy required potential claims to be reported during the policy period, and not during the policy's extended reporting period. Bridges v. Maxum Indem. Co., 2024 WL 4682691 (E.D. Mich. Nov. 5, 2024). The court also granted an excess insurer's motion to dismiss, holding that the excess policy's retroactive date exclusion applied to the claim.

The insured law firm purchased a primary professional liability policy and two excess liability policies. During the two-year extended reporting period of the primary policy, the insured notified the insurers of a potential legal malpractice claim against it for failing to respond to motions for summary judgment in a medical malpractice action. After the insured had failed to respond to the motions, the court entered judgment against the insured's