Professional Liability insurance protects the insured against loss from a claim of alleged negligent acts, errors or omissions, or breach of duty in performance of their professional services. Professional Liability also covers against alleged claims of libel and slander.

This type of coverage is written on a “Claims Made” form. The difference between this type of coverage, and that used in General Liability coverage (“Occurrence” form) is n the way that claims are handled. The Claims Made form only covers claims made against the insured during the policy term. A claim made after the policy expires is not covered by a Claims Made policy, unless the claim is covered by an extended reporting period.

Policy Terms

Basic Extended Reporting Period (Basic tail) – This coverage is provided automatically without an additional premium charge if the coverage is cancelled, not renewed, or the insurer renews with a later retroactive date. The basic extended reporting period starts at the end of the policy period and lasts for five years for claims made against the insured within the five year period and reported to the insurer within 60 days after the end of the policy period.

Supplemental Extended Reporting Period (Supplemental Tail) – The supplemental extended reporting period is available under the same circumstances as the basic one. However, o\it becomes effective only if the named insured makes a written request within 60 days after termination of the policy period and the additional premium is paid. The supplemental extended reporting begins when the basic one ends, and it continues forever. It cannot be cancelled by the insured or the insurer. The supplemental tail endorsement would provide coverage for claims reported to the insurer within 60 days after the end of the policy period, but did not result in a claim being made against the insured until after the end of the five year policy period.

Retroactive Date – The retroactive date shown in the policy declarations is the same as the inception date, or the retroactive date can be a date prior to the inception date.