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AXIS INSURANCE SERVICES, LLC: Professional Liability (E&O) Claims Scenarios

The following are several Professional Liability/E&O claims representing different professions.

Real Estate

A real estate agent sold a building and, as part of the negotiations, was asked if the building was ADA-compliant. The leasing agent said yes and forwarded a copy of a report from the building manager attesting to its compliance. The building was a residential apartment complex and sold for $25 million. Later it came to light that it was an old report and, in fact, the building needed significant upgrades to become ADA-compliant ($3.5M in upgrades). The owner, selling agent, and consultant were all sued. The lawsuit was eventually settled for $3 million.

Technology

A software developer sold timekeeping software to a company. After removing all previous timekeeping clocks and installing software, the customer discovered it did not function properly. It failed to correctly apply the hourly and overtime rate of pay resulting in over and underpaid employees and the need to replace the original time clocks. The company sued the provider of the software for damages and expenses resulting in $550,000.

Insurance Broker

An insurance broker contacted a client and recommended an additional type of coverage to protect him against lawsuits by employees. The client told the broker he wasn’t worried about employee-related suits and that he also didn’t want to pay any additional premium. A loss occurred and a suit was filed by an employee. The insured claimed in court that the broker never mentioned any such coverage to him. The broker had no record in his files of any conversation, nor did he document the file by sending the insured a letter confirming the conversation. The client was awarded $1,000,000.

Accounting

An accounting firm was hired to set up a client’s investment properties. The accountant assigned to the project mistakenly set up the investment properties as a corporation instead of a partnership. The client sued the accountant alleging losses for tax liability. The accountant had to pay the client $375,000.

Architect

A company provided consulting services to architects and developers for large live entertainment venue halls. After the construction of a symphony hall, the owner sued the consulting company and others, alleging the sound quality in the hall was defective. Defending the case was expensive because of the potentially high exposure for the plaintiff’s lost profits claim. The suit settled with the architect who had provided faulty specifications for the sound equipment paying the bulk of the settlement.

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Tail Coverage Insurance

For nearly two decades, the insurance professionals at Axis Insurance Services, LLC

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Professional Liability Insurance (E&O)

Professions

As specialists in Professional Liability insurance, Axis Insurance Services, LLC offers Errors & Omissions Liability insurance products to almost any industry

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Professional Liability Insurance (E&O)

Insurance

Just as managing a client’s professional liability exposure properly is critical, insurance agencies must also ensure that their own Errors & Omissions (E&O)

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Professional Liability Insurance (E&O)

Legal

As an attorney or law firm, you’ve been on both sides of the table: defending professionals and their work in disputes

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Professional Liability Insurance (E&O)

Real Estate

As one of the nation’s largest independent firms writing Commercial Real Estate E&O insurance, we provide a unique perspective in this risk.

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Professional Liability Insurance (E&O)

Technology

Errors & Omissions (E&O) insurance for the technology industry is designed to cover the financial loss to a company’s customer as a result of an error or omission

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Professional Liability Insurance (E&O)

Healthcare/Medical

The healthcare and medical sectors have undergone major changes in the last decade due to increased regulation and oversight

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Professional Liability Insurance (E&O)

Architects & Engineers

Architects and engineers are increasingly seeing more professional liability lawsuits today with allegations that an error or omission in the work

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Professional Liability Insurance (E&O)

Financial Institutions

As a leading provider of Professional Liability insurance products, Axis Insurance Services, LLC provides financial institutions

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Professional Liability Insurance (E&O)

Consulting

As a consultant, your clients look to you to provide advice and recommendations based on your expertise and years of experience.

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Professional Liability Insurance (E&O)

Media

Creators of media content produce and market everything from ads, scripted and reality television programs, films and newspapers to Internet articles and blogs.

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Professional Liability Insurance (E&O)

Mortgage Bankers & Brokers

Our Mortgage Bankers errors and omissions insurance (E&O) programs are specifically tailored to each mortgage banker or broker.

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Professional Liability Insurance (E&O)

Miscellaneous Services

It’s inevitable that at some point in a company’s lifespan an error will occur that will cause financial damage or loss to a client.

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Professional Liability Insurance (E&O)

Resources

Following is information for greater insight into the need for Professional Liability insurance and risk management:

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Professional Liability Insurance (E&O)

Claims Scenarios

Following are several Professional Liability/E&O claims representing different professions.

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Professional Liability Insurance (E&O)

Construction

Construction Professional Liability Insurance can provide coverage for firm in the event of a lawsuit brought against it for claiming negligence in providing

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