Hanover Insurance says politics played no part in decision to drop coverage for lawyer defending whistleblower that led to President Trump’s impeachment trial

Citing that it had no “appetite” for his “high-profile work, Hanover Insurance Group says it will not renew coverage for the attorney representing the whistleblower who first flagged concerns over President Donald Trump’s dealings with Ukraine, the New York Times reports.

The Worcester-based insurance provider said the move wasn’t political but had to do with specific coverage.

“Underwriting and renewal decisions for this program are based on assessments of risk and compliance with our guidelines – politics play absolutely no part in these decisions,” a spokesperson for Hanover Insurance Group Emily Trevallion said.

The lawyer, Mark S. Zaid, told the Times he was “stunned” after he learned Hanover would not renew his lawyer’s professional liability coverage last month.

Zaid, the report said, called the insurance provider to confirm the decision. Hanover declined to reverse its request.

Hanover said it offers a lawyers’ professional liability insurance program for general practice law firms, however, certain highly specialized practices, such as whistleblower work, are outside of explicit underwriting guidelines.

Zaid, though, told the Times he’s had the same law practice for 25 years with a number of high-profile cases. Zaid also said he told the insurance provider about his whistleblower practice when he was applying for coverage in 2019, the report said. Zaid provided the Times with emails documenting the 2019 coverage.

Hanover, though, said non-renewal was based on new information. Zaid’s coverage, Hanover said, will also continue through October.

“Based on new information about the significant focus Mr. Zaid’s firm places on whistle-blower work, which was considered at renewal, we informed Mr. Zaid we did not intend to renew his policy, providing more notice than is required by law,” Trevallion said. “Subsequent to that notice, we have talked with Mr. Zaid to explain our position, and followed up with a written correspondence.”

The report said Zaid was notified of the non-renew through a letter, which said the insurer discovered his whistleblower practice when it reviewed his website, and that such an area of law was “ineligible” for coverage.

“We have been advised that liability coverage for firms with significant whistleblower practices is readily available in the surplus lines market, where companies specialize in insuring these types of business,” Trevallion said. “For the record, our company fully supports the spirit and intent of whistleblower laws and recognizes the value of these laws in a democracy.”

Zaid first applied for the policy in October 2019, just as the whistle-blower complaint was gaining attention.

Democrats eventually moved ahead with an impeachment inquiry over Trump’s dealings with Ukraine.

The whistleblower said several Trump administration officials believed the president had undermined U.S. foreign policy and illegally sought election assistance from the Ukrainian president. The inspector general of the intelligence community determined that the whistleblower complaint appeared credible.

President Trump was impeached by the U.S. House of Representative in December. The Senate acquitted Trump in February.

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