The state of the economy influences the type malpractice suits filed against professional firms, but errors and omissions insurers can expect claims regardless of economic factors, a panel of experts said Thursday.
Diana Shafter Gliedman, an Anderson Kill shareholder in New York, said several of her clients are concerned about covering the costs of government investigations. Over the past few years, she said, there’s been “a significantly sharp increase” in accounting firms and some law firms receiving subpoenas as a result of the investigations.
“Frankly,” Ms. Gliedman said, “whether the economy is good or whether is bad, I’ve observed that when a business deal goes south or litigation doesn’t go the way a client intended it to go, that could frequently lead to a lawsuit and that’s when our clients look to their E&O coverage.”
To read the full story: E&O suits flow in good times and bad: Panel