Professional liability insurers are in the business of protecting professionals, directors, officers, and companies who are accused of misfeasance, malpractice, or negligence. But insurers themselves face significant risks; policy terms will be misinterpreted and claims decisions will be challenged. Even as underwriters endeavor to create new protections for policyholders in light of technological innovation and regulatory reform, professional liability insurers must be careful to secure their own positions. Cozen O’Connor has been looking out for the interests of the insurance industry for decades.
Our attorneys serve underwriters of diverse professional liability coverage, including directors’ and officers’ (D&O) and errors and omissions (E&O). In the field of D&O, our clients include insurers of Fortune 500 companies, banks, brokerage firms, financial institutions, and non-profit agencies. With respect to E&O, we represent the insurers of banks and financial institutions, pension funds, financial advisors and brokers, medical professionals, legal professionals, architects, engineers, and accountants.
Cozen O’Connor attorneys have handled cases with hundreds of millions of dollars at stake, including cases that emerged from the insider trading scandals of the 1980’s, derivative trading and hedging losses in the 1990’s, post-2000 accounting scandals, and the recent financial crisis. We have served as coverage counsel in claims by shareholders against corporate directors and officers, claims by investors against brokerage houses, and claims by large companies against investment houses. We have led recent coverage litigation stemming from mergers and acquisitions, securities claims, mutual fund market timing, contingent commissions, failed banks, pyramid schemes, subprime lending, cross‐border securities class actions, cyber/technology breaches, government investigations, and managed care disputes.
Our lawyers are highly regarded both for their knowledge of complex insurance products and understanding of the underlying protected industries. Professional liability policies are distinguished from other forms of insurance because they focus entirely on the unique processes, transactions, and terminology used by professionals in particular lines of work. Because our attorneys are steeped in the nuances of clients’ businesses – from accounting practices to HIPAA codes to debt issuance – they are able to provide sophisticated counsel about related coverage and potential claims.
In addition, practice group members hold leadership positions and remain actively involved in numerous industry associations, including the Professional Liability Underwriters Society, the American Bar Association’s Tort, Trial & Insurance Practice Section (TIPS), the ABA TIPS Professionals’ Officers’ & Directors’ Liability Committee, the ABA TIPS Insurance Coverage Litigation Committee, the Chartered Property Casualty Underwriters Society, and the Risk and Insurance Management Society.
SERVICE AREAS
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Analyze and advise on all aspects of policy coverage
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Investigate and monitor significant claims presented under E&O and D&O policies
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Evaluate liability and damages issues in underlying lawsuits
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Represent insurers in mediation and arbitration
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Negotiate settlements of coverage litigation and underlying claims
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Litigate all manner of professional liability coverage cases
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Draft client opinion letters and position statements issued to policyholders
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Manage defense counsel and analyze defense invoices
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Draft insurance policies, forms, and endorsements
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Supervise bordereau reporting of large E&O and D&O programs