Professional Services Exclusion Bars Coverage For Tax Fraud Claims, Panel Affirms
(August 19, 2015, 12:02 PM EDT) -- SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Aug. 18 affirmed a lower federal court’s finding that an insurer has no duty to defend former directors of a now-defunct company because their business and management indemnity insurance policy’s professional services exclusion bars coverage for claims that the insureds engaged in a payroll tax scheme (Darryn Begun, et al. v. Scottsdale Insurance Co., No. 13-16211, 9th Cir.; 2015 U.S. App. LEXIS 14495).