Insured’s failure to pay contract benefits due and related attorneys’ fees are not covered under errors and omissions policy *

USA - May 24 2012
In Health Net, Inc. v. RLI Insurance Company, et al., Cal. Ct. App. Case N. B224884 c/w B240833, the California Court of Appeal clarified that contract benefits owed by an insured are not covered by a liability insurer because the obligation to pay contractual amounts is not a loss due to a “wrongful act.”