Specialty businesses and professionals face a unique exposure based on the services they provide. Professional Liability is a generic term that includes a few different “specialty” types of insurance for professionals ranging from doctors and lawyers to appraisers and notaries. Each provide a specific service and face unique exposures for which a standard General Liability will not cover. Professional Liability coverages can include coverage for negligence or alleged negligence, defense costs, Libel or Slander, and Copyright Infringement.
Professional liability can cover:
Coverage is typically written on a claims-made form but can also be written on an occurrence form. The claims made form requires claims to be made during the policy period. Claims may take years to develop, that is why most policies contain a “retroactive” date. The policy will cover claims made on or after the stated retroactive date on the policy. Some carriers offer “full prior acts” coverage to provide coverage for incidents that may have occurred in the past.
Most carrier’s will exclude services that are covered under a General Liability policy so it is always best to check with your agent regarding any exclusions if you are unsure. Carrier’s typically exclude the following:
Workers Compensation Claims
Any personally identifiable information
Any services performed that are not specifically mentioned and accepted by the carrier