Liability Lessons

Pennsylvania CPA JournalVol. 78 Nbr. 2, July 2007

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Summary


To protect your liability insurance coverage, you need to listen for trouble both as a whisper and a scream. Whisper or scream you have the same duty to report the matter to your professional liability insurance carrier when trouble comes. Often, professional liability insurance policies are written on a "claims made and reported" basis rather than an "occurrence" basis. One reason professional liability policies are written on a claims-made basis is that, given the nature of professional services, pinpointing an occurrence can be difficult to define. Another facet to consider in professional liability insurance coverage is the kind of "claim" that will serve to trigger coverage. Depending upon how a policy is written, so-called "demands for services" can serve to trigger a "claims made and reported" obligation.

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Liability Lessons

"Whisper or scream, you have the same duty to report the matter to your professional liability insurance carrier when trouble comes."

Insightful lessons can be learned by reviewing professional liability issues. With this in mind, Mather &am...

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