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Do Professional Liability Exclusions Matter?

It is important to note any insurance policies that have professional liability exclusion. This is liability arising out of the provisioning of professional services that result in or from, a computer attack.

Most professional liability forms have exclusions for loss arising from an unauthorized access and security breaches. In that case, coverage must be carved back in via endorsement. In some instances, the policy is silent on the subject, but history has shown that the intent is not to cover these exposures.

Reviewing a fictitious case: an entity provides computer services to a 3rd party and negligence in providing those services allows for a hacker to gain access to the 3rd party’s confidential information. The 3rd party sues for negligence.

Coverage options for such an event could be through an enhanced professional liability policy that is designed for your organization. In order for a professional liability policy to respond, the policy would need to be endorsed to clarify coverage responds to liability arising out of professional services.

This sample loss scenario is meant to be illustrative and is by no means an exhaustive or indicative list of exposures and coverage solutions.

Contact a TechAssure member to review your organizational exposures and coverage solutions.

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