
“
John reviewed and walked us through our existing policies and explained areas of potential improvement with a clarity we had not experienced with our existing global insurance broker. He quickly familiarized himself with our business model (something no other broker we had ever worked with seemed able to do) and then offered insight into and helped us navigate the insurance questionnaires with a sharp understanding of an insurance underwriter’s psyche.
Carlos de Oliveira, M.A.Sc., P.Eng.
President and CEO
PROFESSIONAL LIABILITY POLICY
WHAT TYPE OF PROTECTION DOES PROFESSIONAL LIABILITY COVERAGE PROVIDE?
Professional liability insurance protects your firm from claims alleged to have been caused from its professional service activities. The policy pays for claim-related (1) legal costs and (2) damage payments when found liable for bodily injury, property damage or economic losses.
This differs from commercial general liability policies, which limit coverage to bodily injury and property damage claims from non-professional service activities.
FAQ’s
Insurance company Underwriters evaluate several factors in preparing quotations, such as:
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Policy limit and deductible requested
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Number of licensed professionals
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Number of years in business
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State(s) where business is conducted
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Professional service activity billings (prior 3-5 years)
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Difference between projected annual and actual billings (at policy renewal)
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Mix of professional disciplines, project types and clientele
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Project delivery methods
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Use of sub-consultants
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Quality control, including use of written contracts
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Office policies, procedures and training activities
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Claim experience
Frequency of claims by claimant (2010-15 Travelers Survey)
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30.5% Private Owners/Users
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21.1% Design Professionals
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16.1% Developers
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12.3% State or Local Government
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8.9% General Contractors
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7.6% Public Institutions
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3.5% All Others