1. Forms
2. PR
3. PR-00-07

What the form is

The PR 00 07 Blood Banks Professional Liability Coverage Form is an insurance policy form that provides professional liability coverage on an occurrence basis. This means the policy in effect when the injury-causing incident occurs is the one that responds to the claim, regardless of when the claim is actually filed. Its primary purpose is to insure blood banks against liability for damages because of injury caused by a "medical incident" arising out of the insured's business as a blood bank. The language and structure of this form closely mirror the Hospital Professional Liability Coverage Form (PR 00 03), but it is specifically tailored to the unique risks faced by blood banks.

Classes of business it applies to

This form is designed exclusively for blood banks. It addresses the specific professional liability exposures inherent in their operations. Real-world examples of incidents this form would cover include:

• Injury to a blood donor during the phlebotomy (blood drawing) process, such as nerve damage or fainting leading to injury.
• Injury to a recipient of blood or blood products due to:
  • Transfusion of improperly typed or cross-matched blood.
  • Transmission of infectious diseases, such as HIV or hepatitis, through contaminated blood products.
  • Impurities in the blood administered.

Special considerations

Several important points should be considered when using or evaluating the PR 00 07 form:

• Occurrence Basis: As an occurrence form, it provides coverage for incidents happening during the policy period, which can be crucial for exposures that may not result in immediate claims (long-tail claims).
• Auto Exclusion: The form contains an exclusion for injuries arising from the ownership, maintenance, use, or entrustment to others of any automobile. This is a critical consideration for blood banks that operate bloodmobiles; a separate Commercial Auto policy is necessary to cover exposures related to these vehicles.
• No Antitrust Exclusion: Unlike the PR 00 03 Hospital Professional Liability form, the PR 00 07 does not contain an exclusion for antitrust law violations.
• Products Liability Aspect: If a blood bank distributes blood products (e.g., plasma, whole blood) that are tainted or otherwise cause injury upon transfusion, the PR 00 07 form will apply to a resulting claim. This provides a level of integrated products liability coverage for the blood products themselves.
• Definition of "Medical Incident": The term "medical incident" is defined specifically to align with the operations and exposures of a blood bank.
• No Ambulance Definition/Exception: The form does not define "ambulance," and the auto exclusion does not have an exception for loading/unloading patients from an ambulance, which differs from the PR 00 03 form.

Key information for agents and underwriters

Agents and underwriters should focus on the following when dealing with the PR 00 07:

• Risk Assessment: Thoroughly evaluate the blood bank's protocols and safety measures for donor screening, blood collection, testing, labeling, storage, and administration of blood products.
• The Auto Exposure: Proactively address the auto exclusion, especially if the blood bank utilizes bloodmobiles, ensuring adequate Commercial Auto coverage is in place.
• Coverage Scope: Understand that while the form covers professional services and the distributed blood products, it's not a comprehensive general liability policy. Other CGL exposures would need separate coverage.
• Comparison to PR 00 03: Be aware of the similarities to the Hospital Professional Liability form (PR 00 03) but also the key differences in exclusions (auto, antitrust) and definitions.
• Deductibles: Note that the Deductible Liability Insurance endorsement PR 03 00 is designed to be used with this coverage form, allowing for the application of a deductible to covered incidents.
• Pricing and Underwriting: The occurrence trigger necessitates careful underwriting and pricing to account for the potential of claims arising long after the policy period has expired.