Professional and Management Liability: Exposures and Insurance Coverage Course Outline

  1. Chapter 1 Introduction and Course Overview
  2. Chapter 2 Introduction to Professional and Management Liability
    1. What Is a Professional and What Is an Executive?
    2. The Need for Professional and Management liability Insurance Policies
      1. CGL Policies do not Cover Economic and Financial Injury
        1. What is Economic and Financial Injury?
      2. Professional Liability Exclusions for Specific Professions within CGL Policy Forms
      3. The Designated Professional Services Exclusionary Endorsement (CG 21 16)
      4. No Coverage under BOP or Homeowners Policies
    3. Legal Sources of Professional Liability and Management liability
      1. Tort Liability
        1. Elements of a Tort (Negligence) Claim
        2. Sources of Standards for Professional Conduct
      2. Contract Liability
      3. Defenses to Professional Liability Claims
        1. Statute of Limitations
        2. Assumption of Risk
        3. Failure of the Client To Fully Disclose All Information
        4. Failure To Comply with the Professional's Instructions or Advice
        5. Contributory or Comparative Negligence
        6. Written Consent by a Patient Absolving a Professional from Liability
      4. Expanding Areas of Professional Liability
        1. Liability to Third Parties
        2. The Professional as “Deep Pocket”
        3. Imposition of Rigorous Performance Standards on Skilled Service Providers
  3. Chapter 3 Types of Professional and Management Liability Insurance Coverage
    1. Management Liability Insurance
      1. Directors and Officers (D&O) Liability Insurance
        1. Liability to Shareholders
        2. Liability to Other Parties
      2. Fiduciary Liability Insurance
        1. Persons and Institutions Considered To Be Fiduciaries
        2. Potential Claims against Fiduciaries
      3. Employment Practices Liability Insurance
        1. Corporate and Individual Liability
        2. Third-Party Liability
        3. Types of EPL Coverage
      4. Kidnap Ransom Insurance
      5. Commercial Crime Insurance
    2. Medical Professional Liability Insurance
      1. Physicians Professional Liability Insurance
      2. Hospital Professional Liability Insurance
      3. Allied Health Care Liability Insurance
        1. Legal Duties and Types of Claims Applicable to Allied Health Care Risks
      4. Nursing Home Liability Insurance
      5. Managed Care Organization Liability Insurance
    3. Non-Medical Professional Liability Insurance
      1. Coverage for “Traditional” Professionals
        1. Lawyers Professional Liability Insurance
        2. Accountants Professional Liability Insurance
        3. Architects and Engineers Professional Liability Insurance
      2. Errors and Omissions (E&O) Liability Coverage
        1. Insurance Agents Errors and Omissions Insurance
        2. Real Estate Brokers Errors and Omissions Insurance
        3. Technology Errors and Omissions Insurance
        4. Intellectual Property Insurance
      3. Media Liability Coverage
      4. Public Entity Liability Coverage
        1. Public Officials Liability (POL) Insurance
        2. Police Professional Liability (PPL) Insurance
        3. Educators Legal Liability (ELL) Insurance
      5. Miscellaneous E&O Liability Coverage
        1. Customizing Endorsements
        2. Hazard Class Ratings
  4. Chapter 4 Common Features of Professional and Management Liability Policy Forms
    1. Insuring Agreements
      1. Covered Persons
        1. Coverage of Former Employees
        2. Coverage of Spouses
        3. Coverage of Personal Representatives
      2. Covered Organizations
        1. Coverage of Predecessor Organizations
      3. Covered Services/Covered Acts
        1. The Application: An Important Indication of the Scope of Covered Services
      4. Covered Territory
        1. The Importance of Worldwide Coverage
      5. Covered Damages/Covered Losses
        1. Return of Professional Fees Are Not “Covered Damages.”
        2. Other Items That Are Not “Covered Damages”
        3. Coverage of Punitive Damages
      6. Covered Defense Costs
      7. Defense Costs are within, Not in Addition to Policy Limits
      8. Application of Deductibles/Retentions to Defense Costs
      9. Covered Supplementary Payments
      10. Defense Provisions
        1. Defense Procedures: “Duty To Defend” versus “Non-Duty To Defend” Language
        2. Settlement Procedures
        3. The Hammer Clause Settlement Procedure
    2. Limits, Deductibles/Retentions, and Coinsurance Provisions
      1. Limits
        1. “Related Claims” Provisions
        2. Exhaustion of Limits
      2. Deductibles/Retentions
        1. Deductibles versus Retentions
      3. Coinsurance Provisions
    3. Conditions
      1. Notice of Cancellation and Nonrenewal
        1. Notice of Cancellation
        2. Notice of Nonrenewal
      2. Subrogation Provisions
        1. Subrogation Waivers Prior to a Loss
        2. Subrogation Waivers are Not Permitted After a Loss
      3. Other Insurance Clauses
        1. Excess Other Insurance Clauses
      4. Miscellaneous Conditions
        1. Prohibition of Voluntary Payments and Settlements
        2. Cooperation Clause
        3. Legal Action against the Insurer
        4. Mandatory Arbitration Provision
        5. Nontransferability Provisions
        6. Severability Provisions
        7. Continuation of Coverage in Bankruptcy
    4. Exclusions
      1. The Duty To Defend Is Broader than the Duty To Indemnify
      2. Uninsurable Exposure Exclusions
        1. Notary Claims
        2. Trademark and Copyright Infringement
        3. Previously Reported Claims and “Known” Incidents
        4. Antitrust Violations
        5. Return of Professional Fees
        6. Illegal Personal Profit
        7. Nonpecuniary Relief h. Bankruptcy of Insured
        8. Intentional, Criminal, Fraudulent, Willful, or Dishonest Acts
        9. Losses from Professional Guarantees
        10. Losses from Commingling and Accounting Practices
      3. Removable/Modifiable Exclusions
        1. Failure To Maintain Insurance Exclusion
        2. Contractual Liability Exclusion
        3. Insured versus Insured Exclusion d. Prior and Pending Litigation
      4. Exclusions To Coordinate with Other Insurance
        1. Employment Practices
        2. Bodily Injury/Property Damage
        3. Personal Injury
        4. Related/Affiliated Entities
        5. Claims from the Delivery of Related Professional Services
        6. Workers Compensation
        7. ERISA Responsibilities
        8. Public Service Positions/Service for Another Entity
        9. Motor Vehicles, Aircraft, Watercraft
        10. Pollution
        11. Nuclear Energy
      5. Exclusions for Specialized Exposures
    5. Coverage Triggers
      1. How Claims-Made Coverage Triggers Function
        1. First-Made Language
        2. Against the Insured, during the Policy Period
        3. On or after the Policy’s Retroactive Date
        4. The Purpose of Retroactive Dates
      2. The Rationale for Claims-Made Coverage Triggers
        1. Unique Aspects of Professional Liability Exposures
        2. Easier to Price Coverage
      3. Discovery Provisions
        1. Illustration
        2. The Purpose of Discovery Provisions
      4. Extended Reporting Provisions
        1. ERPs and Discovery Provisions Compared
      5. Coordinating EL/PL Coverage
        1. Coordinating EL/PL Policies with Each Other
        2. Coordinating EL/PL Policies with Other Types of Policies
  5. Chapter 5 The Application Form in Professional and Management liability
    1. Information Contained in Applications
    2. The Significance of the Information within the Application
      1. Application Information Incorporated within the Policy
      2. Application Information Forms Basis upon Which Policy Is Written
      3. Insurer Relies on Truth of Application Information
    3. Warranties and Representations
      1. What Constitutes a Warranty?
      2. What Constitutes a Representation?
      3. Warranties versus Representations: The Distinctions Can Blur
      4. The Materiality Standard
    4. Remedies for Providing Material Misinformation or Omitting Material Information
      1. Rescission
      2. Reformation
      3. Cancellation
      4. Nonrenewal
        1. Nonrenewal and the Application
    5. Miscellaneous Issues Relating to Applications
      1. Notice of Potential Claims
        1. Notice of Potential Claims in the Initial Application
        2. Notice of Potential Claims in Renewal Applications
      2. Severability Provisions
      3. Insured’s Duty To Update the Application
  6. Chapter 6 Underwriting Professional and Management Liability Insurance
    1. Rating Bases
    2. Premiums Are Not Subject to Audit
    3. Modification Factors in Pricing
      1. Professional Specialty
      2. Mix of Professional Specialties/Services
      3. Practice Location
      4. Type of Client
      5. Years of Professional Experience
      6. Education and Training
      7. Prior Claim History
      8. Continuity of Insurer Relationships
      9. Policy Limits
      10. Deductible/Retention Level
      11. Extent of Prior Acts Coverage
      12. Loss Control Programs
      13. Competition
      14. Broker Representation
  7. Chapter 7 Professional and Management Liability Risk Control
    1. Reasons for Risk Control
      1. Damage to Professional or Corporate Reputation
      2. Disruption of Internal Productivity
      3. Absorption of Deductibles/Self-Insured Retentions
      4. Future Premium and Deductible Level Increases
      5. Avoidance of Cancellation or Nonrenewal
      6. Exclusion of Coverage for Certain Claim Types
      7. Cost of Potential Insurer Insolvency
      8. Inability To Offer Competitively Priced Services
      9. Reduced Coverage Availability
    2. Professional and Management liability Risk Control Techniques
      1. Develop a Clearly Defined Scope of Services
      2. Commit Oral Agreements to Writing
      3. Document All File Activity
      4. Conduct Peer Reviews
      5. Maintain Reasonable Workloads
      6. Consult Specialists If Necessary
      7. Conduct Quality Control Audits
      8. Encourage Continuing Professional Education
      9. Avoid Making Warranties or Performance Guarantees
      10. Require Alternative Dispute Resolution Approaches
      11. Screen New Clients
      12. Negotiate and Explain Fees in Advance
      13. Bill Clients Monthly and Discuss Payment Problems with Them
      14. Keep Clients Informed with Periodic Status Reports
      15. Avoid Conflicts of Interest
      16. Preserve Client Confidentiality
  8. Chapter 8 Professional and Management Liability Claims Management
    1. Unique Management Aspects
      1. Settlement Sensitivity
      2. Professional Liability Claims Adjusting: A Specialized Area
    2. The Use of Attorneys
      1. Outside Counsel Selection
    3. Unique Coverage Issues
    4. Diminishing Limits Issues
      1. To Whom Does Defense Counsel Owe Its Primary Allegiance?
    5. Communication Issues
    6. Trial Strategy Issues
    7. Settlement Issues
  9. Chapter 9 The Professional Liability and Management Liability Insurance Marketplace
    1. Excess and Surplus Lines
      1. The Need for Excess and Surplus (E&S) Lines Insurance
      2. The Excess and Surplus Lines Market
      3. The Regulatory Environment for Excess and Surplus Lines
      4. Distribution System for Excess and Surplus Lines
        1. Types of Wholesalers
        2. The Need for Wholesalers
        3. Alternatives to Wholesalers
    2. Lloyd’s of London
      1. Syndicates
      2. Lloyd’s and U.S. Risks
    3. Captives, Risk Retention Groups, and Risk Purchasing Groups
      1. Captives
      2. Risk Retention Groups
      3. Purchasing Groups

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