Professional Liability and Commercial General Liability Insurance
The coverage for which you are applying is an Annual policy. The Professional Liability is written on a “Claims Made” basis. This means that the act, error or omission has to occur after the Retroactive Date and the Policy has to be in force at the time that the claim is made. The General Liability is written on a "Per Occurrence" basis - i.e., it responds to claims arising from occurrences which take place during the policy period - regardless of when the claim is made.
If your expiring General Liability policy was written on a "Claims Made" basis, you will need to contact that broker to find out what your options may be with regard to "tail" coverage for that policy. (Please note there is usually only a short time frame during which this "tail" coverage is available for purchase when the policy is expiring.)
The application attached becomes a part of your Professional and/or General Liability policy. Unless otherwise noted or advised, coverage under the policy extends only to the activities you list (unless changed by endorsement) - so it is very important you accurately and completely describe the work to be covered by these policies.
The General Liability policy excludes professional services – an essential part of your insurance coverage. Therefore, in order to bind any General Liability coverage, Underwriters require you also maintain the Professional Liability insurance in equal or greater limits.
It is preferable any subcontractors you use maintain their own professional and general liability insurance in limits at least equaling yours and name you as an additional insured under their policy. We do have an Additional Insured Form attached which may be used to request additional insured status for your clients or subcontractors. That coverage is provided only to the extent that liability arises out of your conduct as the Named Insured.
Watch the wording of your client's contracts! The ASSP General Liability policy provides coverage only with respect to your work and to the extent the same liability would exist in the absence of a contract. It does not cover contractual indemnification requirements nor cover you for failure to maintain a client's insurance requirements. For this reason, it is especially important for you and/or your attorneys to review the contractual and indemnification section of your clients contracts to make sure you are aware of the liabilities you may be assuming and request changes as necessary.
The GL insurance policy provides only General Liability coverage. Thus for example, the General Liability policy will not provide coverage for the following:
*Automobile Liability (Owned, Non-owned or Hired)
*Stop Gap Coverage
*Your Personal Business Property
Some of these coverages may be available to us through other markets in certain states. If you are in need of them, let us know. In closing, we look forward to working with you. If you have any questions about the application or the coverage, please feel free to give us a call.