Insurer On Hook For Defense In BestComp E&O Suit

Law360, New York (November 16, 2010, 2:27 PM EST) -- Indian Harbor Insurance Co. does not have to indemnify BestComp Inc. for damages that might arise from a class action over medical providers' workers' compensation bills, but the insurer does have to pay for the company’s defense of the litigation, a federal judge has ruled.

The errors and omissions policy Indian Harbor extended to BestComp parent Cannon Cochran Management Services Inc. in July 2009 contained explicit exemptions for punitive damages, but those exemptions do not allow the insurer to evade its responsibility to defend BestComp —...
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