Coverage Descriptions
The following descriptions of policy coverage and features are intended to give our life agent clients a basic explanation of insurance terms used on our Website. We are obligated to tell you that wherever these explanations may differ from actual policy language, the policy language always prevails. If you would like a copy of the policy, simply send us an email and we’ll be happy to send one to you.
Professional Liability Insurance
Also known as Errors and Omissions (E&O) coverage, this coverage protects you and your company in the event a client alleges they have suffered a loss as a result of an error or an omission committed by you in the delivery of your professional services. For example:
- Failure to provide a service
- Improper documentation
- Improper supervision
- Malpractice
- Mismanagement
- Misrepresentation of facts
- Nondisclosure
- Violations of state and federal law (e.g. violation of right to privacy), and many more.
Professional Liability covers your organization, your professionals and/or employees in the course of providing professional services to your clients. In addition to paying for covered damages, the policy available through Target also pays for legal defense costs -- even if the claim is bogus. Considering that the cost for legal services can quickly add up to thousands of dollars (even hundreds of thousands), defense cost coverage is critical.
Claims Made and Reported Policy
Your claims made and reported policy from Target covers only those negligent acts or omissions that occurred during the policy term. You must have known about the claim (thus "claims made") and "reported" it to the insurance company during your policy's twelve month term.
However, the optional Prior Acts Coverage described below is designed to protect you against claims that may have occurred before your policy effective date. And the optional Extended Reporting Period (also described below) affords you more time to report a claim that occurred during the term of your policy.
Prior Acts Coverage / Retroactive Date
Because there is often a lag between the time services are rendered and when a potential claim is made known, Prior Acts provides coverage for professional negligence claims that arise from services rendered prior to the current policy’s effective date. The Retroactive Date is the date back to which Prior Acts Coverage is effective.
Target's Policy:If your Professional Liability coverage has been continuous, we offer optional Prior Acts Coverage as far back as your existing Retroactive Date.
Extended Reporting Period (ERP)
You may know this as "Tail Coverage." Almost the opposite of Prior Acts Coverage, an ERP extends the time during which a negligent act or omission that occurred during the policy term can be reported as a claim to the insurance company. With an ERP, claims that would have been covered during the policy term are covered during the term of the ERP.
Target's Policy:We offer Life / Health Agent clients the option to purchase different ERP terms depending on the circumstances (retirement, coverage cancellation, etc.).
Definition of Insured
The Professional Liability Policy offered through Target includes a generous definition of who is covered under your policy: current and former firm principals, partners, employees, and independent contractors (for acts performed on your behalf).
Definition of Professional Services
The Professional Liability policy offered through Target includes the following:
- The sale or servicing to individuals and/or small group plans (maximum of 100 employees) of life, accident, health and disability income insurance or annuities; variable products (e.g., flexible or scheduled premium annuities); variable life insurance; and contracts providing for participation in life insurance company investment accounts.
- Providing advice, consultation, administration and services, including those of a Notary Public, in connection with the insured's business as a licensed life and/or accident and health insurance agent; and in conjunction with any products listed above.
- The sale, attempted sale or servicing of insurance products on the Internet in conjunction with the professional services described above.