Heyl Royster



Cloud and Flatt Author Chapter in IICLE Liability Insurance Practice Handbook


Patrick Cloud and Greg Flatt have authored the "Intentional Act Exclusion" chapter in the Commercial and Professional Liability Insurance Practice Handbook published by the Illinois Institute for Continuing Legal Education (IICLE, 2014). This chapter begins by pointing out that it is long settled law in Illinois that an agreement to indemnify a person for damages resulting from his or her intentional conduct is contrary to public policy. The authors go on to discuss a wide range of factual scenarios in which intentional act exclusions are commonly implicated. The chapter also includes a section on insurance coverage for professional services, also known as "errors-and-omissions policies," noting that these policies add an additional wrinkle to claims involving alleged intentional conduct. The authors explain that professional services policies generally cover services that are relevant to a particular profession, and insure members of that profession from special risks. Under these policies, the "intentional act" exclusion is also affected by the scope of the policy's definition of "professional services," which can create an important threshold issue that may be important to consider.