Professional Services Coverage and Exclusions: Insurer and Policyholder Guidance

Significant disagreements exist between insurers and policyholders as to what constitutes “professional services” for determining whether a loss is insurable. Companies addressing the issue with corporate and coverage counsel should consider their policies’ coverage grants and exclusions in this area before a claim arises.

Explaining to clients--insurers or policyholders--whether a particular claim involves professional services is challenging. Depending on the circumstances, multiple lines of commercial insurance could cover the claim, or it may fall squarely in a gap between policies. For companies providing services that are traditionally considered “professional” in nature, like architecture, engineering, law and medicine, the issues are less complicated. The more complex issues and disputes may arise with other types of companies, particularly where technology is blurring the distinction between products and services or altering the manner in which a company operates. Practitioners negotiating these provisions and counseling clients on their impact must understand three key concepts addressed in current case law:

• The meaning of professional
• The meaning of services
• The nexus between professional services and a policyholder’s liability

Listen as our distinguished panel of insurance practitioners provides critical insight into the shifting notion of what may qualify as “professional services," the impact on negotiating coverage grants and exclusions, and how counsel can identify and avoid gaps across multiple lines of coverage.

1. Professional services coverage and exclusions
   1. Meaning of professional
   2. Meaning of services
   3. Nexus between services and policyholder liability
2. Types of coverage
   1. CGL
   2. D&O
   3. Professional Liability
3. Negotiating coverage
   1. Policyholder perspectives
   2. Insurer perspectives

The panel will review highly relevant issues, including:

• How to stack multiple lines of coverage to prevent gaps
• Factors impacting judicial findings of “professional services”
• How counsel can use these factors to help clients avoid blindspots in their risk management regimes