Professional Liability Blog

Amidst an increase in the number and severity of professional liability claims, design-professionals can protect themselves and reduce the risk of a claim by focusing on their core expertise, choosing the right clients, entering into favorable contracts, and maintaining written records and communications. 

The 8th Circuit affirmed summary judgment in favor of an insurance broker on claims of negligent procurement and breach of contract brought by a putative additional insured under a property policy

Using a weak password, particularly one that is shared across multiple services, provides an easy avenue for a data breach. Professionals are particularly at risk because they maintain client data — if a professional firm suffers a data breach, its clients are at risk too.

Many professionals know their liability insurance policies are written on a “claims-made” basis, meaning the policies provide coverage for claims made within the policy period and not when the event occurs. Due to the nature of these policies, those seeking coverage are required to report all known pending or potential claims when submitting applications for new policies or renewing existing ones. A recent ruling from the United States District Court for the Western District of Missouri highlights the importance of honest reporting of all pending and potential claims. See N. Am. Capacity Ins. Co. v. KM Teh Realty 5, LLC.

Attention real estate agents, brokers, lenders, and title insurance agencies! As the residential and commercial real estate markets continue to evolve and fluctuate in 2023 with the financial markets that impact and drive them, seller authority to convey land continues to be a hot topic.