Miscellaneous Professional
Claims Scenarios

Our Claims Department is staffed with experienced attorneys and insurance professionals who are committed to our philosophy of customer service. The majority of claims are managed from HFP's home office in New York.

Our Claims Department has earned an unequaled reputation for excellence in claims handling and administration largely on the basis of their devoted day-to- day management of claims. Our primary objective is to investigate promptly all claims, and effectively control litigation costs by resolving claims in a fair and cost-effective manner. HFP has also simplified the management of MPL claims by giving department members appropriate initial levels of settlement authority, thereby providing them with the ability to make timely decisions and resolve claims in an efficient manner.

The Claims Department works closely with our underwriters in developing policy language and interpreting coverage issues. Our claims department also assists in evaluating a business' culture, risk management and loss control procedures, and is available to respond to an insured's questions.

CLAIM SCENARIOS - WHAT COULD HAPPEN?
Too many professionals are in the dark about their professional liability exposures. The following selection of claims may assist in shedding light on the types of lawsuits that may be brought against various professionals:

Scenario #1
Real estate agent assists in purchase of a home. After closing, the purchasers discover structural defects and deficiencies. Unable to locate the sellers, they turn to their real estate agent and claim the agent breached his/her duty to conduct a reasonably competent and diligent visual inspection; was negligent; and made misrepresentations.

Scenario #2
Real estate broker is sued by a prospective purchaser when the transaction failed due to financing difficulties and the purchaser lost his non-refundable escrow deposit. Allegations against the broker for misrepresentations as to availability of funds prior to the money going into escrow.

Scenario #3
Real estate broker involved in a commercial property transaction. Broker sued by client because the transaction allegedly resulted in business failure to the purchasers. Clients alleged that the broker misrepresented the condition of the property.

Scenario #4
Property manager is sued by its client condominium association for allegedly failing to deliver a leasing packet and for allegedly interfering with entry, possession, and occupancy of a unit leased by plaintiffs from a unit owner.

Scenario #5
Property manager is sued, along with its client condominium association for failure to properly supervise construction and repair work performed by a third party. The third party then sues the property manager for breach of contract and for indemnification.

Scenario #6
Property manager faces allegations that it breached a management agreement by not repairing or maintaining HVAC systems or the roof, failing to implement a preventive maintenance program addressing leaks, and failing to report "emergency" leakage within 24 hours of detection.

Scenario #7
Third party administrator providing various administrative services for employee benefits plans. Claims that TPA failed to make required tax payments, and failed to properly invest accumulated deposits.

Scenario #8
Advertising agency engaged for a promotion that included design and copy. Ad agency's proofreading mistake led to the customer's paying for production of inaccurate and unacceptable promotional products. Claim brought for negligence in proofreading.

Scenario #9
Advertising agency campaign included use of promotional toys. Clerical error leads to order of 25% more than what the client had requested. Claim made regarding return of the excess order.

Scenario #10
Franchisee assumes an existing operating agreement, eventually closing its store. Franchisee subsequently alleges that the franchisor unfairly competed against franchisee by extending to the area developer more favorable terms regarding new stores than were made available to franchisee

Scenario #11
Managing agent is sued by owner for fraud, misrepresentation, mental anguish, and defamation when the board of managers seeks to remove an objectionable or dangerous animal.