Albert J. Schiff Associates, Inc. v. Flack

OPINION OF THE COURT

Fuchsberg, J.

The issue is whether a disclaimer of liability, based on specified exclusions in two professional “errors and omissions” indemnity insurance policies, waived the insurers’ defense that the claim was outside the scope of the insuring clause of the policy.

The plaintiff, Albert J. Schiff Associates, Inc., life insurance agents and employee benefit consultants, purchased two such insurance contracts from the defendants, who are Lloyd’s insurers.1 The “insuring agreement” clause of each policy provides that the insurer will pay “all sums which the Assured shall…