Professional Liability Insurance
Professional liability policies provide coverage to professionals for negligent acts. There are medical malpractice policies, attorney malpractice policies, engineering malpractice policies etc.. There are “occurrence” polices and “claims made” policies. Most policies are claims made policies.
An occurrence policy provides coverage from a negligent act within the coverage period. A claims made policy provides coverage for a claim made within the policy period regardless of when the negligence occurred. Claims made policies provide a more limited scope of coverage than occurrence policies. Generally, claims made policies provide coverage only for the policy year although retroactive coverage can be obtained. Depending on the circumstances, a claims made policy without retroactive coverage may be challenged as providing occurrence coverage.
Errors & Omissions Insurance
Errors and omission policies are professional liability policies. Some professions are more apt to use errors and omissions as the form of coverage but the coverage follows the same criteria as professional liability policies.