The client was toxic—calling at 3 AM, abusive emails, scope creep. I exercised the termination clause in my retainer agreement and quit with 30 days’ notice. They sued me for “Contract Abandonment” and “Tortious Interference,” claiming my departure ruined their Q4 launch and cost them $200,000.
Key Takeaways
- “Wrongful Act” includes Breach of Duty: The client is arguing you had a professional duty to finish the work. E&O generally covers this unless it was malicious.
- The “Intentional Acts” Exclusion: This is the danger zone. If you quit “just because,” the carrier might say you intentionally caused the harm. You must prove you quit for “cause” (abuse, breach of terms).
- Contractual Liability: Does your policy cover breach of written contract? Some only cover negligence.
- Lost Profits: The client is suing for future money. Your insurance is excellent at fighting these speculative damages.
The “Why”: Professional Services Definition
The Trap: Did you quit professionally?
If you ghosted them, that’s intentional abandonment (likely uncovered).
If you followed the contract’s termination clause (gave notice, handed over files), then the lawsuit is frivolous. Your insurance covers “frivolous claims arising from professional services.”
You need to show the adjuster that you followed the “Standard of Care.”
The Investigation: I Quoted 3 Major Carriers
1. Philadelphia Insurance Companies (PHLY)
- My Analysis: Strong on “Miscellaneous Professional Liability.” They understand that business relationships end. If you followed the contract, they defend you.
2. BiBERK
- My Analysis: Their automated underwriting is rigid. If the claim is “Breach of Contract,” they might send a denial letter initially. You have to fight to get an adjuster to see it as a “dispute of services.”
3. Markel
- My Analysis: Good for high-risk professions. They offer “Contractual Liability” endorsements that fill the gap between negligence and breach.
[IMAGE: Checklist for “Safe Client Termination” to preserve insurance coverage]
Comparison Table: Abandonment Defense
| Carrier | Contractual Liability? | Defense Strength | Cost | Best For… |
| Markel | Yes (Endorsed) | High | | Agencies |
| PHLY | Yes | High | | Consultants |
| BiBERK | Weak | Low | $ | Small Claims |
Step-by-Step Action Plan
- Document the “Cause”: Save the abusive emails. Show why you had to quit.
- Verify Notice: Prove you sent the 30-day notice as required by the contract.
- Hand Over Files: Do not hold files hostage for payment. That is extortion and voids insurance. Deliver the work to date.
- Notify Carrier: Frame it as “Client alleges professional error in termination process.”
FAQ
Can they force me to keep working?
No. The 13th Amendment forbids involuntary servitude. They can only sue for money.
Does insurance pay if I just walked away?
If you ghosted without notice? Probably not. That is considered “Gross Negligence” or “Intentional Misconduct.”
What if I didn’t have a contract?
Then you are relying on common law. It’s messier, but insurance should still defend the “negligence” allegation.