1. Forms
2. PR
3. PR-00-14

What the Form Is

The PR 00 14, titled Veterinarians Professional Liability Coverage Form, is a type of insurance policy that provides professional liability coverage, often referred to as malpractice insurance, specifically for veterinarians. This is a claims-made coverage form, meaning the policy in effect when a claim is first made is the one that responds, provided the incident occurred after the retroactive date and before the policy expiration. It covers the insured for amounts they become legally obligated to pay as damages because of injury arising out of a "veterinary incident". The policy also includes provisions for an Extended Reporting Period (ERP), which allows the insured to report claims after the policy has ended under certain conditions, such as cancellation, nonrenewal, or if the insurer renews with a later retroactive date or on a non-claims-made basis.

Classes of Business It Applies To

This form is specifically designed for and applies to:

• Individual veterinarians
• Veterinary practices, which can include partnerships, limited liability companies, associations, or corporations.

Real-world example: A veterinary clinic could use this form to insure its practicing veterinarians against claims of negligence in the diagnosis or treatment of an animal, leading to injury or death of the animal.

Special Considerations

• Claims-Made Basis: It is crucial to understand that this is a claims-made policy. The claim for damages must first be made during the policy period or during any purchased extended reporting period. The veterinary incident causing the injury must not have occurred before the retroactive date shown in the Declarations or after the policy's expiration date.
• Retroactive Date: The retroactive date is a key element. Incidents occurring before this date are not covered, even if the claim is made during the policy period. Maintaining continuity of coverage or ensuring prior acts coverage is critical when moving from one claims-made policy to another.
• Extended Reporting Period (ERP): The insured has the right to purchase an ERP under specific circumstances, such as policy cancellation or non-renewal by the insurer. This is important for covering claims that may arise from incidents that occurred during the policy period but are not reported until after the policy expires.
• Notice of Claim: The insured must notify the insurance company as soon as practicable of any circumstance that may result in a claim. A claim is generally considered a suit or demand for monetary damages.
• Nonrenewal: While the form itself may not contain cancellation provisions, it does typically include a nonrenewal condition requiring advance notice (e.g., thirty days) from the insurer. If written as a stand-alone policy, Common Policy Conditions or other amendatory forms must be included to detail cancellation terms.

Real-world example: If a veterinarian performed surgery on an animal in June and the policy expired in July with no ERP, a claim made in August for complications arising from that surgery might not be covered under the expired policy unless an ERP was in place. If the veterinarian switched insurers, the new policy's retroactive date would be critical.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters will assess the type of veterinary practice (e.g., small animal, large animal, specialized surgery), the experience and claims history of the veterinarians, and the practice's risk management protocols.
• Definition of "Veterinary Incident": This is central to coverage and typically involves an act or omission in the providing of or failure to provide professional veterinarian services.
• Policy Limits and Deductibles: These will be specified in the Declarations. Endorsements like PR 03 04 (Deductible Liability Insurance) can be used to apply deductibles per veterinary incident or business entity incident.
• Coverage Gaps: Agents should counsel clients on potential coverage gaps, especially when transitioning between claims-made policies or from an occurrence policy to a claims-made policy, emphasizing the importance of the retroactive date and ERPs.
• Exclusions: Like all policies, this form will contain exclusions. It's important for both agents and underwriters to be familiar with what is not covered.
• Related Endorsements: Various endorsements can modify the coverage, such as those for additional insureds (e.g., employees) or to adjust deductible provisions.