The Sandberg Phoenix professional liability team has extensive experience representing accountants, attorneys, architects and engineers, insurance agents and brokers, real estate brokers and a wide range of other professionals. These attorneys believe the best way to avoid a professional liability case is to learn from the past, and they write extensively about previous cases, current issues and relevant topics relating to a very important subject in the Professional Liability Blog.

A Professional’s Quick Guide to Professional Liability Insurance – Part 2 of 2

In our first segment, we discussed the basic coverage provisions of a professional liability insurance policy and the concept of wasting policy limits. In this second segment, we will talk about exclusions commonly found in a professional liability insurance policy. Common Exclusions: Bodily Injury and Property Damage: Except for certain professionals such as medical providers…

A Professional’s Quick Guide to Professional Liability Insurance – Part 1 of 2

Professional liability insurance, often presented in the form of an “errors and omissions” policy, is a form of liability insurance providing coverage for claims made as a result of professional advice or services. Professionals including attorneys, accountants, engineers, architects, insurance brokers/agents, and real estate brokers/agents should maintain professional liability insurance to protect their businesses and…

Whose Duty is it to Exercise Ordinary Care Anyway? Yours, if You Hold a License to Sell Insurance in Illinois

There’s a case from 2015 that’s worth looking at again for insurance agents in Illinois. This was the one where the Illinois Supreme Court decided that a person who has to be licensed to sell insurance in Illinois has a duty to “exercise ordinary care and skill” in renewing, procuring, binding, or placing coverage. The…

In Pari Delicto (“In Equal Fault”), or Not? Accounting Firm’s Assertion of Client’s Wrongdoing Not a Defense to Malpractice Claim

An accounting firm does auditing work for a public company. The sole shareholder and president of the public company commits fraud, but the accounting firm allegedly should have caught it. Nicholson v. Shapiro & Associates, LLC Can the accounting firm successfully assert the in pari delicto (“in equal fault”) defense, which blocks a wrongdoer-plaintiff from…

Advertisement of Services Is Not “Rendering” of Services, Says the Illinois Appellate Court

What does it mean to “render” services if (1) you are an insurance agent or brokerage conducting your day-to-day business operations; and (2) you have purchased a professional liability policy to cover errors or omissions you make (or are accused of making) in your business? According to the Illinois Appellate Court in Margulis v. BCS…

Piercing the Corporate Veil in Illinois: For the First Time, the Jury Can Decide

Companies, professional corporations, and insurance carriers doing business in Illinois need to know about a trailblazing new case likely to impact their defense against veil-piercing claims. Traditionally, the question of whether a corporate veil can be pierced to reach the shareholders or owners behind a corporate entity has been for the trial court to determine….

Insurer May Be Liable to Policyholder for Agent’s Failure to Explain Coinsurance Provision Reducing Coverage to Less Than Amount Requested

Insurance agents are wise to mention and explain policy provisions that may cause a reduction in coverage below what the customer wants to have. And in Florida and other states that attribute an insurance agent’s negligence to the insurance company (enabling a direct action against the company), insurers are wise to devise processes that ensure…

A Clean Break Nixed: Virginia’s Continuous Representation Rule Resurrects Legal Malpractice Claim Against Attorney

Attorneys who have withdrawn from representing a client, either at the client’s request or for other reasons, may experience a lingering fear of later being the subject of a legal malpractice claim In some states like Virginia, such a fear may be heightened if the “continuous representation rule” is found to apply. The recent case…

When Things Go South: A Corporate Director’s or Officer’s Personal Liability to Third Parties for Corporate Misdeeds

Generally, corporate officers and directors do not have a special relationship of trust (i.e., a fiduciary relationship) with third persons or creditors transacting business with the corporation. Moreover, unless they sign in an individual capacity, corporate officers and directors who negotiate and execute a contract on behalf of the corporation are not personally accountable on…

Corporate Directors Beware: A Shareholder Direct or Derivative Suit Might Be Around the Corner

Every corporate director needs to be aware of the potential for a shareholder derivative lawsuit or a shareholder direct lawsuit. In Missouri, a derivative action is a suit by the corporation conducted by shareholders as the corporation’s representatives. Nickell v. Shanahan, 439 S.W.3d 223, 227 (Mo. banc 2014). Derivative actions are aimed at rectifying injuries…

MISSOURI

St. Louis  |  Clayton  |   Kansas City

ILLINOIS

Alton  |  Carbondale  |  Edwardsville  |  O'Fallon

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation.
This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. © 2014 Sandberg Phoenix & von Gontard P.C. All Rights Reserved.

Menu