The 10 Point Professional Liability Insurance Comparison Checklist (Part 2)

The 10 Point Professional Liability Insurance Comparison Checklist:  The fine print that you need to know in buying professional liability insurance.  When competitively bid, renewal premiums continue to be at their historic low points.  But comparing quotes is more complex then just comparing the premiums and deductibles.  You have to rely on your broker to explore all of the insurance companies and analyze the offers to your needs.

Our 10 Point Professional Liability Insurance Comparison Checklist (Part 2)

1-5) First 5 listed here: http://wp.me/Lc5O : Prior Acts Coverage, Limit, Deductible, Defense costs, and Territory

6)  Exclusion for claims where you sued for fees.  If you would EVER sue for fees, be aware and do not have this in your policy.

7)  Exclusion for SEC / Banking claims.  If you would EVER do work that touches the exclusion, be aware and do not have this in your policy.

8)  Exclusion for Investment Advice claims.  Beware.  We have seen some very broadly written exclusions that might exclude Trusts and Estates work.

9)  Fraud Exclusion.  To varying degrees, policy languages differ on the presumptions of innocence or guilt when determining if insurers will cover the defense of fraud claims.  Since fraud allegations are often thrown in with regular malpractice cases, take this into consideration in your purchase matrix.

10)  The definition of Personal Injury in the exclusions is sometimes broadly written and should also be in your purchase matrix.

Bonus Tip:  Fully understand how changes in your firm size will be treated by your insurance companies.  With changes, some insurance companies place notice requirements on you and some may charge additional premiums.

Lawyers are known as the experts in the fine print.  Make sure you understand your own policy fine print that determines if your premiums are being well spent or wasted.

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