On December 6, 2016, a Connecticut appellate court held that a contract exclusion in a public entity errors and omissions liability insurance policy did not relieve the insurer’s duty to defend when there was at least a possibility of coverage based on the allegations against the insured. The court reasoned that the fact finder could determine that the underlying negligent misrepresentation claim may not have arisen out of contract, thereby putting the claim beyond the scope of the policy’s contract exclusion. For a more detailed analysis of the Town of Monroe v. Discover Prop. & Cas. Ins. Co. decision, see our most recent client alert which can be found here.