A comprehensive Risk Management program should be developed and maintained by corporate management. Insurance is only one tool in the Risk Management box. Consider working with an expert in your field to:
- Identify your risks
- Measure & Evaluate the impact of your risks
- Mitigate your risks as needed
- Monitor your risks
Professional Services Tips:
What does Professional Liability Insurance cover?
Professional Liability Insurance helps offset the cost of defense and damages for covered claims made by a client in a civil lawsuit or due to a written demand. It is specifically based off the definition of Professional Services, as well as the Insuring Agreement, definition of Claim and other terms and conditions found in the policy.
Why is the Definition of Professional Services so important?
The definition of Professional Services comes directly from the application. It is up to the Insured to correctly tell the Insurer what they do and what they want coverage for. This is important because if the definition is too long it becomes a Named Peril form of coverage, but if it is not comprehensive then there may be gaps in coverage. Clarifying the services that are or may be provided by the insured is essential to securing the right coverage.
What is a Retro Date?
According to IRMI, Insurance & Risk Management Terms Glossary, a Retro Date is a provision found in claims-made policies that eliminates coverage for claims produced by wrongful acts that took place prior to a specified date, even if the claim is first made during the policy period.
For example, a January 1, 2010 retroactive date in a policy written with a January 1, 2010-2011 term would bar coverage for claims resulting from wrongful acts that took place prior to January 1, 2010, even if claims (resulting from such acts) are made against the insured during the January 1, 2010-2011 policy period.
There are two purposes of retroactive dates: (1) to eliminate coverage for situations or incidents known to insureds that have the potential to give rise to claims in the future, and (2) to preclude coverage for “stale” claims that arise from events far in the past, even if such events are unknown to the insured. In the former case, the retroactive date preserves the principle of “fortuity”—that is, the insurer should not be called upon to cover the so-called burning building. In the latter instance, the retroactive date makes policies more affordable by precluding coverage for events that, while insurable, are remote in time.