Victory for E&O Insured
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Victory for E&O Insured

An insurer sought a declaratory judgment that it had no duty under an errors and omissions coverage provision of primary and excess insurance policies to defend its insured in an underlying breach of contract action. The insured was subject to a judgment of over $65,000 in damages and $198,000 in attorneys’ fees in the underlying case. Reversing summary judgment for the carrier in the dec action, the Seventh Circuit held the contract liability exclusion for professional liability in the E&O policy was so broad it made coverage illusory. It declared the policy must be “reformed to meet an insured’s reasonable expectation of coverage.”

Crum And Forster Specialty Insurance Company v DVO Inc