Below is a list of some exclusions on Professional Liability policies for Design Professionals
- Claims by an insured against another insured: The bottom line of this exclusion is that a claim would not be covered if you sued your firm.
- Claims by certain persons or entities: Carriers will not cover claims for when you are sued by another entity owner or controlled by any insured, any entity that has controlling financial interest or by any other entity that is owned by the insured.
- Cost to repair or replace faulty workmanship: Claims are not covered for construction, erection, fabrication, installation, assembly, manufacture or remediation performed by any insured.
- Criminal, dishonest, fraudulent or malicious conduct: Basically if your firm is doing anything illegal the carrier is not going to cover the claim.
- Design or manufacture of goods or products: The carriers will not cover a claim for goods or products. If you have a good or product that will need to be covered under a different type of policy.
- Nuclear Energy: This is a common exclusion, as you can imagine nuclear energy is a high risk for any insurance company.
- Warranties or guarantees: Be sure your contracts do not include any warranties or guarantees, the carriers will not pay for this type of claim.
- Other exclusions that may apply: Condos, mold, asbestos, prior knowledge of any claim that was not disclosed to the carrier, discrimination and harassment and contractual liability.
This is a brief list of common exclusions, be sure to refer to your firms policy so you are aware of what is excluded and not excluded. As always, your PUI agent is available to answer questions.