Key Questions for your Professional Liability Provider.
Every buyer of Professional Liability considers the limits, deductible and premium but these critical questions are often overlooked.
Law firms and other professionals carry Professional Liability Insurance (E&O) to protect them and their practice from errors or omissions claims by clients. I have drafted a few key questions for firms to use in discussions with their provider.
- Can the carrier settle claims without my consent? If not, and I choose to continue the defense am I responsible for the costs beyond the potential settlement amount?
- Is there coverage for intentional dishonest, fraudulent, criminal or malicious acts? Both if such a claim is made against you and if coverage for innocent insureds (partners) exists.
- Can coverage for punitive damages be included?
- Does the policy cover acts for attorneys before they joined the firm?
- Are claims against any insured as the beneficiary or distributee of a trust or estate excluded?
- Is there a separate limit for defense costs?
- Could I incur more than one deductible in one policy year?
- Does the deductible apply to both defense costs and settlements/judgments?
Call your agent today for some answers!