Common exclusions on a Professional Liability policy for Design Professionals are as follows:
-Intentional and dishonest acts – meaning if your firm is dishonest, fraudulent or have a criminal or malicious act the Professional Liability carrier will exclude the claim.
-Claims by certain persons or entities – an insured can’t sue an insured so there is an exclusion on the Professional Liability policy so that this does not occur.
-Faulty workmanship – if any insured has performed any construction, installation, demolition, etc. the Professional Liability policy will not cover these services. The Professional Liability policy is indented to cover design not construction related services.
-Sale or distribution of goods – occasionally referred to as products liability. Goods or products design or manufactured by your firm that are sold or supplied are excluded.
-Discrimination – the policy doesn’t cover acts of discrimination, humiliation, harassment or misconduct based on an individual’s race, creed, color, age, gender, national origin, religion, disability, marital status of sexual preference. This exclusion does not apply to any claim based on the Americans with Disability Act (ADA), the Fair housing Act (FHA) or any similar state of local law.
-Nuclear – nuclear reaction, radiation or contamination are not covered under the Professional Liability policy.
-Assumed liability – liability assumed by an insured under any contract or agreement.
-Warranties or guarantees – express warranty or guarantees are not covered by the Professional Liability policy.
Some other exclusions that are not as common to be aware of on Professional Liability policies; Asbestos, mold, patent infringement, expected or intended failure and internet service interruption, war and terrorism, property coverage, government demands or proceedings, workers compensation and mobile vehicles.
As always it is important that your firm reads the Professional Liability policy so that you understand what is excluded on your specific policy.
As always, please feel free to call or email your PUI agent to ask questions about exclusions on your Professional Liability policy.