Chapter 10 - Professionalism and Brokers' Professional Liability

Question 1

Exclusions

Answer 1

Loss or damage to property in the care, custody, or control of the insured.
Liability for fines or penalties.
Punitive or exemplary damages.
Liability of others assumed under contracts or agreements.
Dishonest, fraudulent, criminal, or malicious acts.
Libel, slander, and other intentional torts.
Nuclear liability.

E&O Specific:
Bodily injury and property damage.
Commissions.
Taxes or the failure to collect taxes.
Payment or return of premiums.
Liability arising from the insolvency of insurers.
Additionally, due to the claims made nature of these policies, they exclude liability for claims arising out of facts or circumstances known to the insured at the inception of the policy.

Question 2

Common Causes of Liability

Answer 2

Failure to:
place insurance promptly;
secure requested coverage;
recommend needed coverage;
explain limitations of coverage;
update the insured’s coverages;
notify the insured of cancellation, non-renewal, or restrictions of coverage at renewal;
renew or canceling insurance inadvertently;
inform insured of industry or legislative changes affecting coverage;
confirm or acknowledge non-existent coverage; and
rectify errors arising from clerical error and/or misunderstanding.