Professional Liability Insurance
Otherwise known as Errors & Omissions insurance, this policy is designed to protect professional practices and consultation businesses that are exposed to claims of financial loss rather than the physical damage and bodily injury exposure picked up by the Commercial General Liability policy.
Professional Liability insurance is specifically for negligence in professional services and advice. Real Estate Agents, Attorneys, Healthcare professionals are all required to carry Professional Liability insurance. Breach of contracts, malpractice, or misrepresentations are the exposures that these types of businesses face, and this policy helps mitigate potential losses for these risks.
This policy is written on a claims-made basis so that only claims made during the policy period are covered. So, what does that mean? It means that the coverage is triggered when a claim is made during the policy period only. It’s important to be familiar with your retroactive date and extended reporting period as they will dictate your coverage period. What are those?
Retroactive Date: this is the date that your liability coverage begins which can sometimes be before the policy inception date. Regardless of how far back the retroactive date goes, the claim must be made during the current policy period for coverage to kick in.
Extended Reporting Period: Since the claims-made policy only covers claims that are filed during the policy period, the extended reporting period extends the discovery period in which a claim may arise from that policy term. This endorsement is also available to purchase as ‘tail’ coverage up to 30 days after the termination of a policy.
Professional Liability insurance is specifically for negligence in professional services and advice. Real Estate Agents, Attorneys, Healthcare professionals are all required to carry Professional Liability insurance. Breach of contracts, malpractice, or misrepresentations are the exposures that these types of businesses face, and this policy helps mitigate potential losses for these risks.
This policy is written on a claims-made basis so that only claims made during the policy period are covered. So, what does that mean? It means that the coverage is triggered when a claim is made during the policy period only. It’s important to be familiar with your retroactive date and extended reporting period as they will dictate your coverage period. What are those?
Retroactive Date: this is the date that your liability coverage begins which can sometimes be before the policy inception date. Regardless of how far back the retroactive date goes, the claim must be made during the current policy period for coverage to kick in.
Extended Reporting Period: Since the claims-made policy only covers claims that are filed during the policy period, the extended reporting period extends the discovery period in which a claim may arise from that policy term. This endorsement is also available to purchase as ‘tail’ coverage up to 30 days after the termination of a policy.