Product Update

Absolute Exclusions Discussed in Professional Liability Insurance


"Absolute" exclusions or exclusions that are especially broad in scope and pertain to any claims "based on, arising out of, or in any way related to …" a certain exposure can be a serious danger to insureds. The presence of an absolute exclusion can often lead to a claim denial in a scenario in which an insured could have reasonably expected coverage.

In this release of Professional Liability Insurance, Fred Fisher offers a detailed analysis of the history, breadth, and case law related to absolute exclusions. He shows how conversations regarding absolute exclusions have evolved in the industry over time and presents some of the major issues that they have posed for insureds as they've been utilized with greater frequency over time. The discussion covers approximately 30 different cases that have involved absolute exclusions, showing how the legal interpretations have primarily been to the benefit of the insurer, rather than the insured. Finally, Mr. Fisher offers some takeaways and potential next steps for the industry to take in order to rein in some of the harmful effects of these exclusions for insureds.