Question 1

What is a claims-made policy?

Accepted Answer

A claims-made policy is a specific type of liability insurance that provides coverage for claims or incidents reported during the policy period if the claim or incident occurred after the retroactive date.

Question 2

What is Risk Management?

Accepted Answer

In the context of insurance, risk management entails assessing potential risks that could result in financial losses and applying strategies to mitigate them.

Question 3

What are Limits of Liability?

Accepted Answer

Liability Limits refers to the designated amount stated in an insurance policy or Declarations page, up to which an insurance provider would pay against claims and lawsuits.

Question 4

What is Professional Liability Insurance?

Accepted Answer

Professional Liability Insurance is insurance that is designed to protect professionals and businesses from errors and omissions in performing their professional services. In the mental health and allied health fields, professionals are often involved in sensitive and complex situations, where misunderstandings or unforeseen outcomes can lead to legal actions. Liability Insurance is meant to protect against such claims.

Question 5

What is an Endorsement?

Accepted Answer

An endorsement is a modification to an insurance policy, allowing for the addition, removal, exclusion, or alteration of coverage. Endorsements can be implemented at the time of policy purchase, during the term, or upon renewal, providing legally binding changes to the insurance contract. For instance, a cyber protection endorsement can be added to a professional liability policy to ensure coverage against data breaches or cyberattacks, which are not typically included in standard professional liability insurance policies.

Question 6

What Does "Aggregate" Mean?

Accepted Answer

In insurance, an aggregate is the highest amount of coverage that an insurance company will pay for all claims arising during a policy period or a specific event.