Berkshire Insurance Unit Sues to Avoid Tax Services Litigation

A Berkshire Hathaway Inc. insurance unit sued another insurer over coverage for an underlying suit against a tax services firm alleging that its mishandling of filings resulted in over $1 million in tax liability.

Capitol Specialty Insurance Corp., the Berkshire unit, covered CPA Insurance Inc.'s predecessor under an insurance company professional liability policy. The policy barred coverage for the claim against CPAI in the underlying litigation because it was first made prior to the inception of the relevant policy, Capitol Specialty said in a complaint filed Wednesday in the US District Court for the District of Vermont.

The claim was ...