What’s Covered by a Lockton Health Professional & Medical Liability Insurance Policy
Professional Liability Insurance is specialty insurance designed to cover individuals working in a professional capacity who earn a fee for their services.
Like Home, Auto and Health Insurance, which provides the financial means to recover from unexpected occurrences on a personal level, Professional Liability Insurance provides financial security to practicing health care professionals on a professional level. It provides coverage for the cost of legal fees to defend you, judgments or settlements (including lawsuits against you) and reimbursement for lost wages due to time spent defending a covered claim.
And just like with any other kind of insurance, doing your homework before making a buying decision is key, as not all insurance policies are the same. Having a good understanding of the coverage that’s afforded under an insurance policy helps you to make an informed buying decision.
Below we’ve outlined the coverage provided by the Lockton Health Professional & Medical Liability Insurance policy. It’s not a complete account of the policy, but it’s a great start to help you compare your options.
About the Lockton Health Professional & Medical Liability Insurance Policy
Claims-made Coverage* – Coverage is provided on a claims-made basis for the professional services you render to clients, protecting you against incidents that are reported on or after your policy’s retroactive date (also known as the prior acts date), which is typically the date your original Professional Liability Insurance policy began. As long as you have continuously renewed claims-made coverage, you may report claims for incidents that occurred in previous years, back to your prior acts date. Read more about claims-made coverage.
Effective Date, Application & Licensure – Coverage becomes effective on the date your completed application is formally approved and premium payment is received. All applicants must meet appropriate licensure or certification requirements (based on your state’s statutes) in your chosen class of business.
Limits of Liability – A wide range of limits are available to fit the exposures of your particular job. The limits you choose should match the size and scope of your practice, and should take into account your potential liabilities. Limits range from $250,000/$500,000 (Limit Per Claim/Annual Aggregate Limit) up to $2,000,000/$4,000,000.
Deductible for Individuals – Individual certificate holders are subject to a $1,000 or $2,500 deductible for each loss, based on the rating category for your specific occupation.
Coverage is Portable – You’re covered for most professions no matter where you provide professional health care services.
Certificates of Insurance – You won’t pay an additional charge for Certificates of Insurance (your tool for providing evidence of insurance to others).
Additional Insureds – You have the option to add qualifying entities or individuals to your policy as Additional Insureds.
Extended Claims Reporting Period Option (“Tail Coverage”) – When coverage under your claims-made policy ends, whether cancelled (for any reason other than non payment of premium) or not renewed by you—or us—you have the option to purchase a 12, 24 or 36-month reporting period endorsement within 30 days from the date of cancellation or non-renewal for an additional premium charge. This “tail” coverage essentially extends the period of time for which claims, as a result of acts occurring during the policy period, can be reported against the policy. If “tail” coverage is not purchased, claims reported after the policy expires are not covered.
Coverage Provided Under the Lockton Health Professional & Medical Liability Policy**
Defense and Settlement Cost Coverage – Provides coverage for damages (a judgment or settlement to the injured party), legal fees and court costs (up to the policy limits) that the Insured becomes legally responsible to pay for Professional and General Liability claims.
Fire and Water Damage Legal Liability – Provides coverage for damage to the premises in which the Insured conducts business—whether rented or temporarily occupied—due to fire or water damage. Coverage does not apply for claims involving First Party Property Damage or Property Damage to personal property.
General Liability – Provides coverage for damages and expenses the Insured is responsible for paying that stem from claims of Personal Injury, Property Damage or Advertising Liability caused by an accident (up to the policy limits).
Host Liquor Liability – Provides coverage for damages and expenses arising from the serving of alcoholic beverages at functions incidental to the Insured’s professional services, so long as the Insured is not engaged in the business of manufacturing, distributing, selling or serving alcoholic beverages.
License Coverage – Provides coverage for the investigation or legal proceedings that result from a state licensing board or regulatory board examining a professional services license.
Medical Expenses – Provides coverage for medical expenses associated with the bodily injury of another person resulting from an accident, regardless of whose fault the accident is, as long as the accident occurred on premises that are owned or rented by the Insured, or occurred as a result of the Insured’s operations. Payment will be made for the following:
- First-aid administered at the time of the accident
- Necessary medical, surgical, x-ray and dental services, including prosthetic devices because of the accident
- Necessary ambulance, hospital, professional nursing or funeral services because of the accident
The injured person must also submit to a physical examination at the insurance company’s discretion in order for payment to be made by the insurance company.
Payment for Loss of Wages – Provides coverage for loss of earnings and reasonable expenses due to the Insured’s attendance at legal proceedings and deposition, up to a maximum per day and/or per event limit.
Property of Others – Coverage is provided for property damage that occurs to the property belonging to others that is in the care, customer or control of the Insured.
*Policies for the nursing profession are underwritten by a carrier who offers both occurrence and claims-made options. Please visit the nurses profession page for more information.
**This coverage overview is provided for illustrative purposes only. Sub-limits may apply for some coverages. Refer to the Master Policy wording for a complete description of all policy terms, conditions and details. The determination of coverage at the time a claim is made is dependent upon the Master Policy wording and the nature of the claim presented.