Understanding professional liability insurance

Learning how to compare policies

Which is the best professional liability insurance policy?

This guide will help AIA members make that decision.

The AIA Trust commissioned Frederic Schultz, CPCU, ARM and chairman and principal consultant of the Insurance Buyers Council, to develop a detailed, annotated version of the new CNA Professional Liability policy, effective in 2015. He compared the new CNA policy with those of five other insurance carriers: Beazley, RLI, Travelers, Berkley and ACE. The goal was to provide guidance to AIA members about coverage differences between the various forms of insurance and about what they should look for when purchasing a liability insurance policy.

The policies differ in many aspects, including the actual insurance agreements. The forms reviewed were base forms without endorsements. Because these forms aren’t standard, each one, plus endorsements, must be closely reviewed when considering options for professional liability insurance. The guide discusses terms and definitions as well as possible provisions and guidelines to avoid potential pitfalls to help members assess coverage. One caveat: An experienced insurance broker is still critical to review and advise which coverage is more appropriate to one’s practice.

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