What it does
BP 22 02 adds a professional liability insuring agreement to the Micro-Businessowners Coverage Form. The insurer pays "loss" and "defense expenses" from a "claim" first made against the insured during the policy period or an applicable extended reporting period, for a "wrongful act" on or after the Retroactive Date and before the end of the policy period, and has the right and duty to defend.
Key provisions
- Claims-made and reported; defense expenses are payable within, and reduce, the limit.
- The Schedule shows the description of covered professional services, the aggregate limit, a per-claim deductible, a prior or pending litigation date, the retroactive date and the supplemental extended reporting period.
Who needs it
Micro-businesses whose customers could sue for financial loss from advice or services.
Quoting and selling notes
- Describe services precisely; anything outside the description is not covered.
- Keep the retroactive date when renewing or moving carriers to avoid gaps, and explain the supplemental extended reporting period at cancellation.
