Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

In June 2007, Buchalter Nemer gave a free seminar in San Francisco, CA on E & O claims.  Usually, an entity/person must have a contract in order to have an E & O claim.  For example, a homeowner buys a helicopter from a toy store.  The helicopter goes in flames.  Instead of going after the toy store, the homeowner obtains funds for the damages from his home insurance.  Can the home insurance provider go after the toy store?  Unlikely because there is no contract between the insurance provider and the toy store. 

The speaker discussed severability clauses, and advised people to purchase a policy with full severability because an insured would lose coverage only if it knew of misconduct by another insured.