While not all policies are the same, there are some similar exclusions for many of the professional liability insurance exclusions. Here are some examples of common exclusions.
Express Warranties or Guarantees
based upon or arising out of any actual or alleged express warranties or guarantees. However, this Exclusion does not apply to a warranty or guarantee by the Insured that the Insured’s Professional Services are in conformity with the standard of care applicable to that Professional Service.
This isn’t as common of an issue as it was about 15 years ago. Your firm will not be covered if you warranty or guarantee your work.
Contractual Liability arising out of:
- the Insured’s actual or alleged liability under any oral or written contract or agreement, including but not limited to express warranties or guarantees; or
- any actual or alleged liability of others that the Insured assumes under any oral or written contract or agreement.
Contractual liability has come up more often lately because this is something that contractors have available in their policies. However, it is excluded in most professional liability policies.
Design Or Manufacture Of Sold Or Supplied Goods Or Products
This policy does not apply to any Claim based upon or arising out of the design or manufacture of goods or products which are sold or supplied by the Insured or by others under license from the Insured, provided that this exclusion will not apply to software sold or supplied by the Insured to its customer or client in connection with the Insured’s provision of Professional Services for such customer or client.
Professional liability insurance companies will not cover a product. They will cover your firm’s design work but not specifically a product.
If you have any questions about common exclusions on the professional liability policy please call, or email, your Professional Underwriter agent for assistance.