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Why Choose Vargas Gonzalez Delombard, LLP for Your E&O Insurance Dispute?

At Vargas Gonzalez Delombard, LLP, we are trial-tested insurance litigation attorneys with decades of experience holding carriers accountable. We’ve successfully recovered millions for policyholders across Florida—including professionals in healthcare, finance, real estate, and consulting—whose insurers failed them when it mattered most. Our firm is deeply familiar with the nuanced provisions of E&O coverage and the tactics insurers use to evade their responsibilities. From our Orlando office, we provide relentless advocacy, personalized strategy, and clear communication.

What Are E&O Claims?

Errors & Omissions (E&O) claims arise when a client alleges financial harm caused by a professional's mistake, negligence, or failure to perform contractual duties. E&O insurance is designed to cover:

  • Misrepresentation
  • Professional negligence
  • Incorrect advice or recommendations
  • Missed deadlines or oversight
  • Breach of professional duties

Professionals who typically carry E&O insurance include:

  • Real estate brokers and agents
  • Financial advisors and investment managers
  • Architects and engineers
  • Insurance agents
  • Consultants and business advisors
  • Medical providers (separate from malpractice)

Why Timing, Scope, and Definitions Are Critical in Florida E&O Disputes

Florida common law establishes the duty of defense and indemnification based on reasonable expectations and ambiguities in favor of the insured.

E&O insurance disputes often hinge on timely notice, the scope of professional services, and whether the act triggering coverage qualifies as an “occurrence” under the policy.

Timely Notice

  • Most E&O policies in Florida are claims-made and reported policies
  • This means coverage is only triggered if the claim is both made and reported during the policy period (or extended reporting period, if purchased)
  • Late notice—even by a few days—can result in a valid claim being denied outright
  • Florida courts have upheld these policy deadlines as enforceable conditions precedent to coverage (Cast Steel Products, Inc. v. Admiral Ins. Co., 348 F.3d 1298 (11th Cir. 2003))

Scope of Professional Services

  • E&O coverage is limited to acts that fall within the defined scope of professional services
  • Disputes often arise when insurers argue that the alleged act was outside the scope of covered work
  • This includes business decisions, management functions, or personal conduct not directly tied to the insured’s professional obligations
  • Policyholders must demonstrate that the alleged error or omission occurred while rendering services within their professional capacity, as defined in the policy

Occurrence vs. Acts or Omissions

  • Unlike general liability policies that cover “occurrences” (typically defined as accidents), E&O policies focus on specific acts, errors, or omissions that lead to financial harm
  • The policy language may exclude coverage for ongoing negligence or repeated acts unless they can be tied to a discrete triggering event
  • Disputes often involve whether a particular event meets the policy’s definition of a wrongful act and whether it occurred within the coverage period or the retroactive date
  • For example, if a financial advisor is sued for giving poor investment advice that caused losses over several years, the insurer may argue the claim arises from multiple acts or that the conduct began before the retroactive date
  • Florida law generally construes ambiguities in favor of the insured, but courts will still apply exclusions narrowly based on the policy’s structure and how the claim is presented
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Why Do Insurance Companies Deny E&O Claims?

Insurers routinely scrutinize E&O claims for legal validity and opportunities to limit their financial exposure. Even when coverage appears straightforward, carriers may reject or delay claims under the guise of technicalities or broad policy language.

Some of the most common—and problematic—tactics include:

  • Invoking vague or catch-all exclusions, such as “dishonest acts,” to sidestep their defense obligations
  • Challenging the characterization of damages, claiming the harm alleged is reputational or punitive, and therefore not covered
  • Disputing the insured’s cooperation, alleging failure to assist in the defense or investigation process
  • Pointing to prior knowledge, arguing the insured knew of potential exposure before the policy period, even absent a formal complaint
  • Asserting lack of specificity, stating that the claim fails to meet the definition of a “wrongful act” or “claim” under the policy’s terms

In practice, many denials are rooted in overbroad interpretations of policy exclusions or speculative assumptions about intent and foreseeability. These are not always legally sound. At Vargas Gonzalez Delombard, LLP, we know how to break down these justifications and expose when an insurer is using them as a shield against a legitimate payout.

What Damages Can Be Recovered in an E&O Insurance Dispute?

Depending on your claim, you may be entitled to:

  • Coverage of defense costs and legal fees
  • Indemnity for settlements or judgments against you
  • Consequential damages (e.g., lost business opportunities)
  • Bad faith damages under § 624.155
  • Punitive damages (in egregious cases)
  • Prejudgment interest
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Tips to Avoid Claim Denial

If you're facing or anticipating an E&O claim, follow these best practices:

  1. Report potential claims early—even if not formally filed.
  2. Keep complete documentation of communications, services, and decisions.
  3. Understand your policy limits, exclusions, and reporting requirements.
  4. Avoid statements of fault in writing or during preliminary investigations.
  5. Consult a qualified insurance attorney before responding to your insurer.
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Evaluating and Resolving Professional Liability Errors and Omissions Coverage Disputes

When a dispute arises, our process includes:

  • Policy analysis to determine your rights under the contract
  • Claim investigation to gather facts supporting your coverage
  • Negotiation with the insurer, including invoking the civil remedy process
  • Litigation, if necessary, for breach of contract or bad faith

We tailor our approach to your profession, policy language, and the specific facts of your case.

How to Select an Orlando Insurance Claim Attorney

Choosing the right attorney can make or break your E&O claim. Look for:

  • Insurance litigation experience, not just contract law
  • Trial readiness, which pressures insurers to settle fairly
  • Familiarity with Florida’s unique insurance statutes
  • Client-focused communication and responsiveness

Vargas Gonzalez Delombard, LLP brings all of the above, plus a track record of results throughout Florida’s state and federal courts.

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FAQ's

Is there a statute of limitations on E&O coverage disputes?

Can E&O insurance cover prior acts?

What happens if I changed insurers recently?

What does the duty to defend include?

Can an insurer deny a claim while still investigating?

Does a reservation of rights affect my case?

What if my policy has multiple exclusions?

Can I recover attorney’s fees if I win?

Is there a statute of limitations on E&O coverage disputes?

Yes. Generally, you have five years from the date of breach to file a lawsuit for contract-based insurance claims in Florida (Fla. Stat. § 95.11(2)(b)).

Can E&O insurance cover prior acts?

Some policies have retroactive dates—coverage may be denied if your claim stems from an act before that date.

What happens if I changed insurers recently?

“Claims-made” E&O policies may not cover you if the claim arises after you switch insurers—unless you have tail coverage or a proper retroactive date.

What does the duty to defend include?

If your policy includes a duty to defend, your insurer must provide and pay for legal representation for covered claims, even if the allegations are groundless.

Can an insurer deny a claim while still investigating?

They shouldn't. Under Florida law, denying a claim without a full investigation can support a bad faith argument.

Does a reservation of rights affect my case?

Yes. A reservation of rights means your insurer is defending you while reserving the right to later deny coverage. You need legal counsel to protect your interests.

What if my policy has multiple exclusions?

We analyze exclusions individually—courts often find ambiguous or overlapping exclusions unenforceable.

Can I recover attorney’s fees if I win?

Yes. Florida law allows prevailing policyholders to recover attorney’s fees in insurance disputes (Fla. Stat. § 627.428).

Get the Legal Support You Deserve

Whether you're a licensed professional facing a client lawsuit or a business owner fighting an unfair claim denial, Vargas Gonzalez Delombard, LLP is here to help. We understand what’s at stake: your reputation, your livelihood, and your financial future. Contact us today to book your case evaluation and learn more about how we can help.

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