What is professional liability insurance?

 Why Should I Purchase Professional Liability Coverage?

 

How does a "claims-made" policy work?

 What is an Extended Reporting Period?

 Does the insurance company need my consent to settle a claim against me?

 What is a Retroactive Date?

 What is the difference between a policy written on an occurrence basis versus a claims made basis?

 Are my independent contractors covered?

What is Professional Liability Insurance?
In general, professional liability insurance protects against claims for damages the policyholder becomes legally obligated to pay to a client as a result of an error or omission in the work provided to the client.

Why Should I Purchase Professional Liability Coverage?
Professional liability coverage provides protection against claims resulting from your professional services. Most general liability policies will exclude this coverage.

How does a "claims-made" policy work?
A "claims made" policy protects the policyholder against claims or incidents that are reported while the policy is in force, or during an "extended reporting period". The negligent act, error or omission must have also occurred during the specific time frame set by the policy.

What is an Extended Reporting Period?
An extended reporting period extends the amount of time in which you can report a claim. The claim must still occur during the policy period…only the time to report is extended. ERP's vary by type of coverage. Some are automatic and some optional ones must be purchased.

Does the insurance company need my consent to settle a claim against me?
Many policies have a "consent to settle" clause that outlines the options for settlement. If a policy does not have this clause, then the insurance company may find that settlement is the best way to handle a claim.

What is a Retroactive Date?
The retroactive date sets how long before the inception of the policy that you are covered for negligent acts, error or omissions that you report during that policy. A retroactive date can match the policy inception date so that no prior acts are covered.

What is the difference between a policy written on an occurrence basis versus a claims made basis?
On an occurrence policy, the claim has to occur during the policy period, regardless of when a claim is actually made or reported. On a Claims Made policy, the claim must be made or reported during the policy period regardless of when the claim actually happened.

Are my independent contractors covered?
Independent contractors can be added by endorsement, subject to the insurance company underwriter approval.

If my colleagues were involved in a criminal act, will I be denied coverage too?
Your insurance company will defend insureds who have neither committed, had knowledge of, acquiesced in or gained an advantage to which it would not otherwise have been entitled to as a result of such criminal, malicious, dishonest or fraudulent acts, error or omission shall be defended.