Limits and Retention.
The individual limit may apply to each claim or to each wrongful act. Professional services may be defined in the policy definitions. Alternatively, the type of services covered may be described in the declarations.
Virtually any business that performs a service or provides advice in exchange for a fee may have a professional liability exposure. The term wrongful act usually means a negligent act, error or omission that you allegedly committed while performing or failing to perform professional services.
Peerless does not have errors and omissions liability coverage. By Marianne Bonner. The policy should state that the insurer will defend you against covered claims.
Peerless created the system and installed it in the stores. If defense costs are subject to the limits, the individual and aggregate limits will include defense costs as well. This means that the insurer will pay damages or a settlement that you are required to pay because of a claim based on a wrongful act.
Peerless develops software programs that are customized for each client. For one thing, Harry's alleged injury is a financial loss.
Nevertheless, the policies have many common features. Make sure that the description accurately reflects the services your business provides. Insuring Agreement.
The aggregate limit is the most the insurer will pay for all damages or settlements arising out of all claims made during the policy period. Most errors and omissions policies are claims-made , meaning they cover claims made during the policy period.
Some policies limit coverage to claims made and reported during the policy period. Continue Reading. For a claim to be covered, it must be made against an insured during the term of the policy.