Professional liability insurance is very important for people who are indulged in the corporate world. Every professional is required to have to protect from different claims against them that can be imposed on them by their clients.
It is very important to be aware of the exceptions listed in your professional liability insurance (e&o) policy. Here are a few exceptions with respect to claims that can not be included in a professional liability insurance policy:
1. Prior knowledge: The insurance company will not cover the company's claims whose members had knowledge prior to the effective date of the policy.
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2. Before the date of retroactive: The insurance company will not cover claims arising from professional services that have occurred before the retroactive date of the policy.
3. Do not report a claim at the right time: The insurance company will only cover claims that are reported in a reasonable amount of time.
4. Arising from non-professional services: The policy will only cover negligence in the performance of professional services. Examples of claims that are non-professionals are a breach of contract, fraud, payment disputes, defective workmanship, and deliberate action.
It only provides general information about professional liability insurance and is not a determination of insurance coverage for certain situations. The actual insurance policy should be consulted for specific coverage details.