Frankly, My Dear, I Don’t Give a “Dam”: Seventh Circuit Holds Professional Liability Insurer Off the Hook in Neighborhood Dispute Tangentially Related to Unobtained Dam Permit

In Madison Mutual Insurance Co. v. Diamond State Insurance Co., No. 15-3292 (7th Cir. Mar. 21, 2017), the Seventh Circuit handed down a decision delineating the obligations between a professional liability insurer and a homeowner’s insurer. At bottom, the court refused to hold a professional liability insurer responsible for the defense of a suit that only tangentially referencing the insured’s professional services. As background, Dr. William and Wendy Dribben purchased a house in 1999 at Heartland Oaks, an exclusive development.
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Professional Services Exclusions Found to Bar Coverage for Insureds’ Administration of Medications Leading to Meningitis Outbreak

In Westfield Insurance Co. v. Orthopedic and Sports Medicine Center of Northern Indiana, Inc. (N.D. Ind. Mar. 28, 2017), an Indiana federal court held an insurer had no duty to defend or indemnify its insured against over scores of malpractice and negligence claims that allegedly caused a meningitis outbreak. The district court concluded that, under the subject CGL and umbrella policies, the underlying claims did not involve an “occurrence” and, further, professional services exclusions precluded coverage entirely. As background, NECC
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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
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