Philadelphia Indemnity Insurance v. PayrollAmerica, Inc. (In Re PayrollAmerica, Inc.)

MEMORANDUM OF DECISION

JIM D. PAPPAS, Bankruptcy Judge.

Introduction

Philadelphia Indemnity Insurance Co. (“PIIC”) insured chapter 7 1 debtor Pay-rollAmerica, Inc. (“Debtor”), a payroll processing services company, its officers, directors, and employees (collectively, with Debtor, “Insureds”), under an Accountants Professional Liability Insurance Policy (“the Policy”). 2 Dkt. No. 24-1. Under the Policy, PIIC had a duty to defend the Insureds against claims for negligent acts, errors, or omissions in the performance of professional services. Id. PIIC also had a duty to indemnify the Insureds as…