Lexington Insurance Co., a Chartis company, has introduced spoliation insurance, which is designed to protect against claims arising from direct physical loss or damage to property that serves as material evidence in a legal proceeding.
Spoliation insurance insures against liability for monetary damages, settlements and defense costs for claims alleging a breach of professional duty. This breach involves the failure to preserve property of evidentiary value belonging to others that is in the care, custody and control of the insured.
“Professionals are often entrusted with property that can affect the outcome of a court case,” said Robert Rogers, assistant vice president of Lexington Insurance Co. “Many states recognize a separate spoliation tort action for the destruction, alteration or loss of evidence. Insureds that are legally obligated to pay damages due to the loss of such evidence can now be protected.”
To meet the needs of the variety of firms exposed to spoliation torts – including architects, engineers, land surveyors, landscape architects and agency construction managers, as well as engineering companies that provide testing and forensic analysis – spoliation insurance is available as an enhancement to Lexington’s architects and engineers professional liability policy. Lexington anticipates expanding this coverage to other lines of business in the future.