What are supplementary payments in a Design Professionals Professional liability policy in the event of a claim?

supplementary paymentsWhat are supplementary payments in a Design Professional’s Professional Liability policy in the event of a claim? Just as it states, Professional Liability policies do have supplementary payments available in the event of a claim for Design Professionals.  Here are some examples of those payments available with some of the insurance companies that Professional Underwriters work with:

  • All reasonable expenses incurred by the Insured at the Company’s request to investigate or defend a Claim, provided that the maximum amount available for loss of earnings for time taken off work will not exceed: $500 per Insured Person per day; and $15,000 per Policy Year for all Insured Persons.
  • All costs taxed against the Insured on that part of a judgment the Company pays.
  • The cost of any required appeal bond for that part of a judgment that is for Damages to which this policy applies, and that is within the applicable Professional Liability Coverage Limit, provided that: the Company consents to the appeal of such judgment; and the Company will not be the principal under any such bond and will not have any duty to furnish such bond.
  • If the Insurer requests the Insured’s presence at a trial, hearing, deposition, mediation or arbitration, the Insurer will pay up to $500 a day per person, subject to a maximum amount of $15,000 per claim.

Please note that in many cases with the insurance companies the payments of the ‘supplementary payments’ will not be subject to the deductible and will not reduce the limits of liability.  But always read your policy so your firm knows what those payments are and if they are available outside of the limits of liability.

PUI Agency is here to help answer your questions on supplementary payments in your Professional Liability policy.

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