Who is an insured on a Professional Liability policy? This list can be fairly long depending on the size of your firm but the most important factor to remember is that an ‘insured person’ will be acting on behalf of the named insured (individual, partnership, trust, corporation or other entity stated on the declarations page of the policy).
An ‘insured person’ includes appointed director, officer, principal, partner, member or employee of the named insured. Additionally, temporary or leased personnel are an insured person while acting on behalf of the named insured.
A question that always comes up with regards to an insured person is former employees. Yes they are covered while they were acting on behalf of the named insured. This list includes retirees, former directors, officer, principal, partner, member or employee (including former temporary or leased personnel).
Again the key to the ‘insured person’ is that they were acting on behalf of the named insured (firm name on declarations page of policy).
Conversely it is important to point out who is not an insured. Clients and sub consultants are not considered an insured person under the Professional Liability policy for Design Professionals. There are often requests for both of these entities to be included as an insured but it is not possible. Your client cannot be an insured because the claims are paid on your behalf to the client and therefore it is not possible to list your client as an insured. With regards to sub consultants, they should have their own insurance set up since they have their own firm.
Since Professional Liability policies vary with every insurance carrier it is important that you read your policy to know who is considered an insured.
If you ever have questions as to who is considered an insured on your policy please feel free to call or email your PUI agent to answer those questions.