Awareness of the exclusions in the professional liability policy is essential to prevent a Project Manager or design team member from inadvertently agreeing to or actually performing design activities that are not covered by the professional liability policy. Accordingly, every Project Manager should have a copy of the policy exclusions.
Activities that are typically excluded from professional liability policies include the following:
- Claims based on the insured having provided express warranties, guarantees, assurances, etc. that are beyond the “standard of care”
- Claims resulting from the manufacture or distribution of products
- Claims based on personnel matters such as discrimination, harassment, wrongful dismissal, employee benefits, etc.
- Claims based on construction performed by the insured
- Claims based on damage to property owned, rented by, or under the control of the insured
- Claims related to the design of nuclear energy facilities
There may be many other “exclusions” that are not mentioned above. Be sure to refer to the specific policy for the exclusions.
