8.4 Professional Services Exclusions

• Jurisdiction: Arizona

Standard commercial general liability policies typically do not provide coverage for claims arising out the rendering of or failure to render professional services, absent an endorsement supplementing coverage.

The Arizona courts have not interpreted the meaning of a professional services exclusion. In Trus Joist Corp. v. Safeco Insurance Co. of America,^[236] the court quoted a professional services exclusion, but did not analyze the exclusion in rendering its decision. Courts in other jurisdictions have upheld the exclusion.^[237] For example, the court in State Street Bank & Trust Co. of Quincy, Illinois v. INA Insurance Co. of Illinois,^[238] considered the exclusion and found that the phrase "any professional service" had been given a broad definition, expanding the scope of the exclusion. The court noted that the term "professional service" was not limited to services performed by persons who must be licensed by governmental authority in order to practice their professions. It found that the term referred to any business activity conducted by the individual involving specialized knowledge, labor, or skill, and of a predominately mental or intellectual, as opposed to physical or manual, nature.

In Marx v. Hartford Accident & Indemnity Co.,^[239] the court defined professional services as follows: "A professional act or service is one arising out of a vocation, calling, occupation, or employment involving specialized knowledge, labor, or skill, and the labor or skill involved is predominantly mental or intellectual, rather than physical or manual." According to one federal district court, the term plainly means services relating to "[a] vocation or occupation requiring special, usually advanced, education, knowledge, and skill [such as the] medical profession."^[240] Although the professional services exclusion focuses upon the exercise of professional judgment, a professional services exclusion does not apply to incidents involving ordinary tasks performed by those who lack relevant professional training or expertise. It is only where the negligent conduct involves specialized knowledge or skills, that the conduct will fall within the purview of the professional services exclusion.^[241]

One court has defined the exclusion as follows, "a 'professional' act or service is one arising out of a vocation, calling, occupation, or employment involving specialized knowledge, labor, or skill, and the labor or skill involved is predominantly mental or intellectual...