David H. Rich, a partner with Todd & Weld LLP, has obtained a $600,000 settlement for the firm's client, a financial services company. The client obtained an Errors and Omissions Insurance policy through the defendants, two insurance brokerage firms. When a suit was brought against the client, the insurer declined coverage on the basis of a continuity date exclusion.
The client was forced to bear the significant cost associated with defending a claim that otherwise should have been covered by insurance. The client prevailed in defending the underlying lawsuit. The $600,000 settlement in this matter covered the legal expenses and costs of defending the suit.