Insurance Defense and Coverage
Coverage Types
Professional liability policies respond to claims alleging negligent performance of professional services. Coverage is defined by the policy's professional services definition, and forms are typically claims-made with defense costs inside the limits.
Consent-to-settle provisions are common, requiring the insured's agreement before resolution.
Alternative Names:
Professional Indemnity Policy, Malpractice Insurance
Why it Matters?
Three features distinguish these policies from general liability and shape every claim: claims-made triggering with retroactive dates, defense within limits so litigation erodes settlement capacity, and consent-to-settle clauses giving the insured a veto. The consent provision creates genuine conflict where an insured wants to fight a claim the carrier would settle, and hammer clauses limiting the carrier's exposure if consent is withheld are the common compromise.
Frequently Confused with
Related terms
Frequently asked questions
What is a consent-to-settle provision?
What is a hammer clause?
