Eleventh Circuit Holds Unlicensed Professional Was Not Engaging In “Professional Services”

The courts frequently apply insuring agreements broadly. However, in a recent decision, a court narrowly applied the definition of “professional services” to restrict coverage. Specifically, in Chapman v. Ace American Insurance Company, the Eleventh Circuit determined the services provided by an individual holding himself out as a counselor did not constitute “professional services.”    

The underlying lawsuit concerned Mark and Barbara Chapman’s ten-year old son who was diagnosed with ADHD and had a history of behavioral problems. The Chapman family engaged the services of …

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Engineering Firm Gets Soaked By Professional Services Exclusions in Water Treatment Plant Claim

In an unpublished decision, the Sixth Circuit affirmed a lower court’s decision judgment in favor of two insurers. Specifically, the Sixth Circuit broadly construed professional services exclusions to preclude coverage.

As background, the Village of Dexter in Michigan hired an engineering and architecture firm, Orchard, Hiltz, & McCliment, Inc. (OHM), to oversee the upgrade of a wastewater treatment plant. The project included both the design and construction phases. Notably, Dexter approved three OHM proposals for professional engineering services. In addition, during the construction phase, OHM …

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Indiana Supreme Court Finds Insured Afforded Coverage For “Professional Services”

In Wellpoint, Inc. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 49S05-1404-PL-244 (Ind. Apr. 22, 2015) the Indiana Supreme Court reversed the trial court and granted summary judgment for Anthem, Inc.against numerous reinsurers (Excess Reinsurers), finding that Anthem was afforded coverage in the underlying litigation under the reinsurance policies.

Anthem, a large managed health care organization, was self-insured for E&O liability. It purchased policies from other insurers to reinsure its E&O liabilities. The underlying litigation consisted of several lawsuits filed against …

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