Lexington Insurance, a Chartis company, has expanded its Spoliation Insurance coverage available to a broad array of insureds, including lawyers, accountants, testing facilities, and document and property storage facilities.
According to Chartis, the new coverage is designed to protect against third party claims alleging spoliation of evidence that is material to a legal proceeding.
Lexington said it first provided coverage for spoliation claims as an endorsement to its professional liability policies for architects and engineers.
Upon the announcement of the new coverage, the enthusiastic response from the marketplace suggested there was a need for the coverage across multiple professional and property product lines.
For professional liability insureds, Spoliation Insurance broadens coverage to recognize spoliation as a wrongful act under the policy, providing coverage for the liability that professionals handling evidence face, even when negligence is not alleged.
And for property insureds, Spoliation Insurance changes the way the valuation of lost or damaged property used as evidence is determined.
Under Spoliation Insurance, a loss is valued as the adjudicated damages determined in court a significant improvement on standard property coverage, which values such property at replacement cost or actual cash value.