**July 20th, 1972**

**Mr. Bud Smith**
**Lexington Ins.**
**25 New Chardon St.**
**Boston, Mass.**

**Re: International Business Machines Corp.**
**GC 402875**

**Dear Bud:**

We have once again received criticism from our broker regarding the malpractice exclusion endorsement, namely endorsements #6 & 7. Our broker objects to the malpractice restriction and endorsement #7 is too restrictive. As you know, the following wording was proposed and is wanted:

"It is understood and agreed that the Error & Omission Exclusion does not apply to the Professional Liability of physicians and nurses employed by the named insured while acting within their scope as employees of the named insured."

Comparing this wording with that stated on endorsement #7, indicates that the coverage falls far short of that proposed above. It is not unusual for the doctors and nurses of IBM Corp. to be called upon to attend non-employees. As an example, as part of their duties, they will examine and treat members of employees' family and non-employees such as those injured in a catastrophe near an IBM installation or visitors or guests injured while on IBM's sites.

(Continued...)