Professional Liability

If you are new to this type of insurance or are unaware of the specific details of your current policy then it is of the utmost importance that you work with a knowledgeable broker in securing your coverage. These polices have unique conditions and coverage triggers which, if not properly understood, can leave you without coverage even though you have a policy in force. The contracts that you sign with your client may also contain hold-harmless or indemnification language that places additional legal burdens on you or transfers risk to you that you might not otherwise have. We will review these contracts with you to make sure you understand the language and its impact, at no charge. Regardless of whether or not you do business with us you will benefit from involving us in the quoting process.

You may be wondering what you could do to trigger coverage under one of these policies. Negligence is typically defined as failure to meet your industry’s standard of care. These policies provide coverage “arising out of any negligent act, error or omission in the rendering or failure to render professional services.” Your policy will specifically define what the term “professional services” means and you want to make sure that the definition includes all of the services that you provide.

So what makes these policies different from the usual general liability policy? First and foremost they are written on a “Claims Made” policy form as opposed to the “Occurrence” form that is typical of general liability policies. This language speaks to the coverage trigger in the policy. Other unique characteristics include a “Retro Active Date”, a “Prior and Pending Litigation” date, and an “Extended Reporting Period”. Understanding the meaning of these terms and how they impact your insurance coverage is of the utmost importance.