Section 19 Limits of Liability and Multiple Claims

• Library: Prof Liability 2005

A claim is typically defined in the policy. Most policies define a claim as a “demand.” In those policies that do not contain a definition of a claim, most courts are willing to conclude that a claim means a “demand.”

Professional liability policies routinely provide three limitations on both the single and aggregate policy limits:

1. There is only a single limit of liability when claims for the same damages are made against more than one insured

2. If more than one person makes a claim or brings suit, it will not increase the limits of liability for each claim or in the aggregate. Under the policy it is recognized as a single claim

3. Consortium and other derivative claims are subject to the same limit of coverage as the primary claim

It has been more difficult, however, to define the extent of coverage when there are multiple “occurrences” giving rise to a claim. In these circumstances, the attorney for the plaintiff in a claim against the professional is generally attempting to argue that there is more than one occurrence giving rise to the claim and that these claims were not related. By taking this approach, the attorney representing the plaintiff is attempting to invoke the aggregate limit of coverage instead of the single claim limit.

In Arizona Property & Casualty Insurance Guaranty Fund v. Helme, 735 P.2d 451 (Ariz. 1987), the Arizona Property & Casualty Insurance Guaranty Fund...