Section 15 The Deductible

• Library: Prof Liability 2005

Like other forms of insurance, the professional liability policy usually contains a deductible. The amount of the deductible is a matter of contract between the carrier and the insured. Also a normal matter of contract is whether the deductible applies to defense expenses. Some carriers will provide the insured with an option to purchase a policy that provides “first dollar defense.” This means that the deductible only applies to indemnity payments and does not apply to defense costs. Because the cost to...