Section 10 Changes in Practice by an Individual Insured Resulting in a Change of Carrier or the Insured Leaving the Particular Profession

• Library: Prof Liability 2005

Frequently, an insured will switch carriers or terminate the practice in the insured’s given field. A clear understanding of a claims-made policy is needed to prevent an insured from losing coverage for claims presented in the future.

When switching from one professional liability carrier to another professional liability carrier, it is crucial for an insured to understand the scope of prior acts coverage, which would be offered by the second carrier to which the insured is going for coverage. If that carrier is offering “full prior acts coverage,” the insured should have no problem in avoiding a lapse of coverage. In offering “full prior acts coverage,” the second carrier is indicating that it will provide coverage for all previous acts of the insured reported within the policy period, including those acts that...