What are the Common Exclusions on Professional Liability Insurance Policies?

What can my Professional Liability Insurance policy exclude?

If you're looking into protecting yourself and your business assets from a variety of risks and have been considering getting a Professional Liability policy, it's likely you are also curious about what your policy will not cover. In this blog, we explain common exclusions that Professional Liability Insurance policies generally have. It's important to understand the exclusions that your policy might have so you're prepared in the event that your insurance company rejects a claim that you think is valid.

Common Exclusions on Your Professional Liability Insurance

Professional Liability Insurance Is Often Profession Specific

Your Professional Liability policy only applies to the profession you have specified in your policy. If you diversify to other services, make sure to inform your insurance provider so that they can update your policy accordingly.

Professional Liability Insurance Does Not Cover Hiring Disputes

Your Professional Liability Insurance policy will not cover a claim made by a person if you refuse to employ them, termination if that person was already an employee or other employment-related practices - such as humiliation, demotion or any other kind of discrimination.

Professional Liability Insurance Doesn't Cover Failure to Collect Payments

If you fail to collect your payments or if the organization that you have provided your services to fails to pay, your Professional Liability Insurance policy won’t cover these costs. This includes fee disputes and reimbursements.

Professional Liability Insurance Does Not Cover Illegal Acts

Any act done by the organization that is illegal, malicious or breaks a law or regulation knowingly is not covered by your Professional Liability Insurance policy.

Professional Liability Insurance Does Not Cover Physical Abuse

Any form of physical or sexual abuse or harassment is not covered in your Professional Liability Insurance.

Professional Liability Insurance Does Not Cover Libel or Slander

Any form of defamation with a permanent record, such as an email, TV or radio broadcast, is not covered.

Professional Liability Insurance Does Not Cover Fines and Penalties

Any punitive damages, like fines and penalties, to your business are not covered.

Learn about what is included in a Professional Liability policy.

These are some of the major policy exclusions that you might have in your Professional Liability Insurance Policy. However, since every insurance provider is different, make sure you go over your insurance policy with a professional to figure out the exclusions in your Professional Liability Insurance. At Foxquilt, we understand that every business is different; we can help you get a Professional Liability policy quote that is specific to your business and covers the risks that may threaten you and your business assets. Get started on your online quote today.