Professional liability insurance takes on different names depending on the industry you are in, but it is also commonly referred to as errors and omissions insurance. If you've purchased professional liability insurance (PLI), you are no doubt counting on your policy to protect you from negligence or damage claims brought by your own customers or clients.

Unfortunately, companies offering PLI policies do not always honor their obligations. If you have been the victim of insurance bad faith and are suffering financial and professional consequences as a result, contact Haffner & Morgan, LLP, to learn more about your rights and legal options.

Professional Liability Insurance Denial Of Claims And Coverage

Insurance bad faith can take many forms. Here are some scenarios you may have encountered:

Example 1: You are a doctor facing allegations of medical malpractice and you file a claim with your professional liability insurer. After receiving the claim, your insurer notifies you that your policy has been rescinded due to "material misrepresentations" discovered in your paperwork. To your knowledge, there are no misrepresentations and this was only revealed after you filed a claim.

Example 2: You submit a professional liability claim for a matter expressly covered in your policy. Your insurer nonetheless denies the claim and fails to explain why.

Example 3: You are the head of a small company and have PLI for all of your employees. One of your newer employees has been accused of a negligent act by one of your company's customers. You file a claim with your insurer, and your insurer claims that the employee in question should be considered an independent contractor — not an employee. Therefore, that person is excluded from coverage and the claim is denied.

Every case is unique, and it is important to review the terms of your policy and the circumstances of the claim with an experienced lawyer in order to determine if your insurer acted in bad faith.

Contact Us Today For A Free Initial Consultation

With an office in San Diego, Haffner & Morgan, LLP, serves clients throughout Southern California. To discuss your insurance dispute with one of our experienced attorneys, call us at 800-511-7834. You can also reach us via email.