CertainCert Insurance Certificate Management & Tracking Blog

Professional Liability Insurance Tracking - Claims Made Concerns

Posted by Cary White on Thu, Feb 17, 2011 @ 16:02 PM

Receive Blog eBook FREE

Professional Liability Insurance Tracking - Claims Made ConcernsOccurrence coverage is the norm for general liability insurance policies today. Subject to the terms and conditions of the insurance policy, coverage will respond to any incidents that occurred during the policy period regardless of when the claim is reported. In general, coverage specifically for prior acts is not needed because it is already covered as the date of the occurrence is the trigger for the coverage not the date of the work or act. Likewise, with some exceptions, tail coverage is not necessary because coverage exists for occurrences during the policy period regardless of the date the claim is reported. While these are generally true, care must still be taken because select insurers endeavor to limit their risk by adding prior loss exclusions and sunset clauses to select general liability policies.

Unlike general liability insurance, claims made coverage is the norm for professional liability policies. Claims made coverage is subject to two essential coverage triggers: (1) the date of the occurrence, and (2) the date the claim was made. Claims made policies will only respond to claims first made during the policy period provided the loss or damage first occurred after the retroactive date. Unsophisticated or budget conscious professional may purchase professional liability coverage with a retroactive date equal to the inception date of the policy. Unless they purchased tail coverage on their prior policies, these professionals have purchased coverage that does not cover their past work. The only coverage they have is for incidents which first occurred and were reported during the policy period.

Click here to read more.....

Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, cancellation, insurance requirements, liability insurance, insurance limits, professional liability insurance, errors and omissions insurance, e&o insurance

Professional Liability Insurance Tracking - Consent to Settle & Hammer Clause

Posted by Cary White on Wed, Feb 16, 2011 @ 15:02 PM

Receive Blog eBook FREE

Professional Liability Insurance Tracking   Consent to Settle and Hammer ClauseUnlike general liability policies where insurers control defense and settlement without the consent of the insured, nearly all professional liability policies do not allow the insurance carrier to settle any claim without the agreement of the insured. This provision has evolved to protect the reputational harm of the insured. The hammer clause is a policy provision intended to encourage the consent of the insured to reasonable settlement offers suggested by the professional liability insurer. Hammer clauses are common on professional liability policies. They can vary in scope and severity. Every hammer clause addresses the indemnity and defense responsibilities of the professional liability insurer if the insured does not consent to a settlement suggested by the insurer. In most cases the insurance company will not pay for any indemnity amount greater than the amount of the proposed settlement. Likewise, the insurance company is not responsible for paying any further defense expenses. While variations do exist in some policies, the insured should expect to be responsible for 100% of any indemnity amount and defense expenses after rejecting the settlement offer suggested by their professional liability insurance carrier. Some insurance policies may not contain a hammer clause, but beware, these same policies may not contain a consent to settle provision either.

Insurance Certificate Tracking

Regrettably, these provisions are common to professional liability insurance policies but not typically referenced anywhere on insurance certificates or other proof of insurance reasonable for insurance certificate tracking and monitoring. Requesting a copy of the entire insurance policy is possible, but problematic and cumbersome. Furthermore, what should you do if you find that the consent to settle and hammer clause are not satisfactory to you? Alternative clauses or insurers more palatable to you may not exist. Choosing not to contract with someone based on these provisions may also be excessive.

Click here to read more.....

Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, insurance requirements, liability insurance, insurance limits, professional liability insurance, errors and omissions insurance, e&o insurance

Professional Liability Insurance Tracking - Additional Insureds

Posted by Cary White on Tue, Feb 15, 2011 @ 15:02 PM

Receive Blog eBook FREE

Professional Liability Insurance Tracking - Concerns of Additional InsuredsDo you request an additional insured endorsement from professionals that work for or with you? Have you experienced trouble obtaining additional insured endorsements from professionals?

It is common practice to request an additional insured endorsement from General Liability insurers and there is a great body of law and experience surrounding those requests. Professional Liability insurance is different. In most cases, underwriters do not allow Additional Insured endorsements on professional liability policies. Getting an Additional Insured endorsement can be vexing particularly for construction projects or other circumstances involving municipalities other government agencies, lenders and others accustomed to being named as an Additional Insured on all liability policies. Why is it so hard to get an Additional Insured endorsement from a professional liability policy?

Essential Reason

Professional Liability coverage is triggered by an allegation of negligence regarding the rendering or failure to render professional services. Parties seeking to be added as an Additional Insured to a Professional Liability policy are generally not a professional firm or providing professional services. Instead, such parties are looking for defense and coverage for suits brought against them. If allowed, such parties would be expected to tender claims for defense to professional liability insurers whether or not an allegation of professional negligence surfaces. Such defense claims would likely be denied by the professional liability insurer as these exposures are contrary to the underwriter's expectations and the policy wording.

Click here to read more.....

Topics: insurance management software, insurance tracking, liability certificate, insurance certificates, insurance certificate tracking, additional insured, insurance requirements, liability insurance, insurance limits, professional liability insurance, errors and omissions insurance, e&o insurance, wasting limit policy, insured v. insured