Claims expenses on professional liability policies for architects/engineers-
The claims expenses will vary with each insurance company, here are a few examples of policy language that defines what is and not covered under a professional liability policy.
Example one
“Claim Expenses” means:
(1) fees charged by attorneys designated by the Company or designated by the Insured with the Company’s prior written consent;
(2) all other reasonable and necessary fees, costs and expenses resulting from the investigation, adjustment, negotiation, arbitration, mediation, defense or appeal of a Claim if incurred by the Company or by the Insured with the Company’s prior written consent; and
(3) premiums on appeal bonds, attachment bonds or similar bonds; provided, however, that the Company is not obligated to apply for or furnish any such bond.
Claim Expenses do not include fees, costs or expenses of employees or officers of the Company, or salaries, loss of earnings or other remuneration by or to any Insured.
Example two
“Claim Expenses” means:
- reasonable and necessary fees, costs and expenses incurred in connection with the defense of a Claim for a Wrongful Act or a Pollution Incident if incurred by the Insurer, or by the Insured with the prior written consent of the Insurer; and
- all other reasonable and necessary costs and expenses resulting from the investigation, adjustment, defense and appeal of a Claim, suit or proceeding arising in connection therewith, if incurred by the Insurer or by the Insured with the prior written consent of the Insurer; and
- premiums for appeal bonds for covered judgments or bonds to release property used to secure a legal obligation, if required for a Claim for a Wrongful Act or a Pollution Incident against any Insured but only for bond amounts within the remaining Policy limit, provided, however, that the Insurer shall have no obligation to appeal or to obtain such bonds.
Claim Expenses do not include any salary, overhead or other charges of or by the Insured for any time spent in cooperating in the defense and investigation of any Claim noticed under this insurance. Claim Expenses do not include costs or expenses incurred by the Insurer for Loss Prevention Assistance. Claim Expenses do not include
Keep in mind, claims expenses are within the limits of liability of the professional liability policy. If you have any questions about claims expenses please call or email your Professional Underwriters agent for assistance.