In the great majority of cases licensed professionals (i.e. lawyers, chiropractors, electricians) also have errors and omissions, or, general liability policy to protect them in the event mistakes are made. This safeguard makes great financial sense and really gives a degree of security to the licensed professional. But, do you know what your policy does not cover?
I have litigated many cases where insurance coverage is either an express or behind the scenes issue, behind the scenes being much harder to define.
One trial I prevailed on in Hennepin County was on behalf of a commercial property owner whose insurer denied a flat roofing claim and the related water damage. Quite properly, the jury awarded my client his full claim amount. That is an example of coverage being an express issue.
A behind the scenes example is when the claims made against the professional are maybe covered by the insurer, but maybe not. In this type of situation the professional/insured has a dual track of problems: the third-party claim and the insurance coverage dispute. I have represented clients in this situation many, many times and it is a much more difficult and expensive situation.
How then does a professional prepare for the behind the scenes scenario? The first step is to understand what is not covered by your liability policy. This requires you to actually read your policy and assess what is actually happening in your day-to-day business that creates an exposure to you. You then compare what is not covered with your business practices that create an exposure, and assess either what additional insurance is appropriate or what to amend in your business practice.
I can use my experience to help you ensure your insurance will do what you think it will do.
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