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A law firm submitted its professional liability claim under a Hanover Insurance Co. policy two days before the coverage became effective, a federal appeals court ruled Friday in affirming a lower court in the insurer’s favor.
In November 2018, several individuals and companies sued DC Capital Law Firm LLP, and the law firm’s registered agent was served with the complaint and summons on Dec. 19, 2018, according to the ruling by the 11th U.S. Circuit Court of Appeals in Atlanta in DC Capital Law Firm LLP v. The Hanover Insurance Co.
DC Capital filed a claim under its lawyers professional liability insurance policy, and the insurer denied coverage on the basis the claim was first made outside the policy period.
The law firm sued the insurer in U.S. District Court in Fort Lauderdale, Florida, which ruled in the insurer’s favor, noting the claim was first made on Dec. 19, 2018, two days before the policy period for its claims-made coverage began on Dec. 21, 2018.
A three-judge appeals court panel affirmed the ruling.
Attorneys in the case did not reply to requests for comment.