Professional Liability Insurance Application Form
If you’re an attorney or accountant, you’re likely very aware of the liability you incur when providing your professional counsel and/or guidance to clients. If you work as an independent human resources or management consultant, broker, financial services or construction professional, the advice you give and services you provide also incur potential liabilities.
Professional liability insurance is a type of liability coverage that’s specifically designed to protect professionals against liability incurred as a result of errors and omissions in performing their services. This coverage is also referred to as professional indemnity as well as errors and omissions (E&O) insurance.
What Does Professional Liability Insurance Cover?
With the exceptions of physicians, architects and engineers, most professional liability insurance policies only cover economic or financial losses suffered by third parties. Meanwhile, bodily injury and property damage claims are typically covered under a commercial general liability (CGL) policy.
Most professional liability insurance policies are written with a claims-made coverage triggers. The International Risk Management Institute (IRMI) explains that claims-made is a “type of coverage trigger that obligates an insurer to defend and/or pay a claim on an insured’s behalf, if the claim is first made against the insured during the period in which the policy is in force.” 1
Unlike commercial general liability (CGL) policies (where defence costs are paid in addition to policy limits), professional liability policies often contain what are known as “shrinking limits,” meaning that the insurer’s payment of defence costs reduces available policy limits.
Professional Liability Insurance Application Form
In the event of a settlement or judgment related to a professional liability claim, the cost of defence will typically represent a high proportion of the claim. When securing professional liability coverage, purchasing additional limits may be of value. An ALIGNED Advocate can help you assess professional liability coverage options and protect your business.
Talk to one of our Advocates today about how we can help you secure the best products, services and solutions for your business.
ALIGNED Across Canada
100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.
Source: 1 IRMI
