Professional liability (PL) and general liability (GL) — distinct and vitally important lines of coverage for any professional services firm. However, maintaining the two coverages with two separate carriers may not be the best way to protect against claims. Here are four key advantages you have when PL and GL are under the same carrier, providing the best shelter from the storm.
There are instances when your PL and GL policies could be triggered by the same claim, yet GL policies carry a rider that excludes professional services — a difficult catch-22 for design and construction professionals. When you place both policies with the same carrier, claims resolution can proceed more quickly because it’s not a question for you or your carrier of, “Is this covered?” but rather a more simple question of where the claim resides.
With that in mind, one carrier for both policies means ease of document transfer — which equals greater digital security for information and data. Two separate carriers for GL and PL, and the information transfer that inevitably goes with it, creates significant leakage points for confidential documents to fall into the wrong hands.
A single point of coverage also allows for consistency in shared defense counsel, indemnity costs, and an easier pro rata determination on which policy covers which percentage of a claim — no wrangling necessary.
One PL/GL carrier means one common goal. Thus, there’s no infighting or conflict from two carriers over who covers what from the same claim. A single carrier instantly quashes “hands off, not me” debates, or both sides putting a magnifying glass to “other insurance” language in individual PL or GL policies.
In each state, admitted carriers are licensed to write policies for specific coverage lines, and regulated as such regarding their business practices, ethics, and consumer protections. Other carriers provide excess and surplus lines — coverage your business may need, but isn’t offered through a state-regulated admitted carrier. Maintaining your PL and GL coverage through the same carrier eliminates any complications that may crop up from separate carriers in multiple states — or even ones operating in the same state but under different state rules. That consistency can create less confusion and greater peace of mind for you and your business in the event of a claim that triggers both PL and GL policies.
Finally, merged PL/GL coverage with a single carrier lessens financial “speed bumps” driven from a single claim. Further, it creates a greater pool of premium for your business that strengthens the value of your carrier-client relationship over time.
The information contained in these articles provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation, and should not be relied upon as such. You should consult your insurance and legal advisors regarding specific coverage issues. All insurance coverage is subject to the terms, condition, and exclusions of the applicable insurance policies. Marsh cannot provide any assurance that insurance can be obtained for you or for any particular risk.