Theft Exclusion Bars Professional Liability Coverage, Federal Judge Rules

Mealey's (July 30, 2021, 12:24 PM EDT) -- WEST PALM BEACH, Fla. — A federal judge in Florida on July 27 held that a professional liability insurer’s theft exclusion bars coverage for an underlying lawsuit alleging negligence, legal malpractice, breach of fiduciary duty and negligent hiring against a law firm insured, concluding that the underlying allegations, although not directly charges of theft, stem from and are dependent on the theft of funds by a fraudster....