Professional Liability--Things misunderstood!- Part #2

    *A standard GL policy does not exclude professional liability but a GL policy only covers bi & pd; so classic E&O is excluded by the Insuring Agreement.

     *If you have an exposure the GL will exclude the bi/pd by an endorsement. One often used is CG 2116 but if you check the listings of CG 22’s many involve professional.

    *These Professional Exclusion endorsements are not excluding E&O as the Insuring Agreement does not cover (hence ‘excludes’) the E&O. They are excluding bi/pd.

    So----the BIG Question---where is the excluded bi/pd covered? If it is malpractice the bi/pd/professional is, of course, covered under the professional/malpractice policy. Obviously, a malpractice policy is covering bi/pd/professional as the malpractice professional’s profession is geared to bi. The big problem is for many other professionals. When I started the GL professional exclusion endorsements were only found on classic malpractice professionals so their malpractice policies “fit” the exclusion. Today, these professional exclusions show up all over the place from software engineers to hair dressers (I had to fight hard to get one removed from my CGL policy). The normal response is----“this should be covered under your professional policy, not your CGL”---if you are a physician is does; if you are an Architect or Engineer it does (A&E forms cover bi/pd as well as E&O).

       HOWEVER, most E&O policies exclude bi/pd, as that is “suppose” to be covered under you CGL. This, in my opinion, is one of the biggest problems in coverage today. Many “non-malpractice” professionals will discover that they have bi/pd excluded by BOTH of their key policies—GL & E&O. It is a gap that needs to be closed.

    *First-(and best)--try to get the professional exclusion removed from the GL policy if it really does not make sense. I was recently listening to a talk given by a company representative to some agents and brokers about their E&O product for e-Risk accounts. He made a POINT that they no longer added the Professional Exclusion to their CGL. There was a bi/pd exclusion on their E&O product but the two would now "fit". That is correct! He went on to say how this could be a problem that they have addressed. So, people are beginning to get this and I give him real credit! This is your BEST alternative.

   *Second—try to get the E&O policy to cover the “professional” bi/pd similar to what the E&O coverage picks up. This is harder to do and clearly not as good as step #1.

    *Third—Get the carrier to give you their opinion---If they say, “it does not mean that” try to get that in writing.

THIS is a REAL problem that needs some real attention!