Professional Liability Insurance

[DanDel]

Does anyone know if it is typical in a Professional Liability Insurance Policy(Errors & Omissions) to only cover "damages other than bodily injury or property damage resulting out of {name of company}'s errors, omissions, or misstatements committed during the performance of professional services"?
This obviously sounds like injury and damage is not covered.

 

[Watermelon]

Your question is good, and offered me an opportunity to review the exclusions in my policy.

Without using legalese, I am NOT covered for:

1. Issues involving the bankruptcy of my company
2. Failing to advise anybody of the need for insurance
3. My failure to provide service on schedule
4. Any liability for others which I have assumed under contract.
5. Any express warranties I have given for the benefit of others, unless that warranty already existed at law.
6. the performance of services not usual or customary for a professional engineer
7. estimates of profit
8. nuclear stuff
9. claims made against me by a company in which I have an interest
10. claims made against me by a company which has an interest in me
11. any product manufactured, sold or supplied by me

So, I believe my policy would cover:

1. personal injuries
2. any kind of property damage

I don't like the wording you have posted. Check it again. Is that really what it says?

 

[DanDel]

Word for word.

 

[GregLocock]

Watermelon, your pt 11 is a bit of a limitation as well. Practically useless in manufacturing industries. Cheers

Greg Locock

 

[Watermelon]

Hi Greg:

Yup, I agree. Point 11 ensures that I will never have have dirt under my fingernails. It prevents me from building anything.

I believe I understand the concern of the insurance companies: they are worried that I will design something and then start chiseling essential elements out of the structure. They think that if I am separated from the construction process I will not be enticed into cheating.

I remember when I worked in construction. I desperately wanted to design something, anything. And now I'm in design, I desperately want to build something, anything.