Professional Liability Assessment

Assessment Introduction

    Page 1

    Welcome to the Professional Liability IQRM!

    With the growing service-oriented economy in the U.S., and around the globe, a wide variety of industries have emerged.  For centuries, there have been industries that provide a “professional service” as compared to the manufacture or sale of durable and nondurable goods - examples include medicine, law and real estate.  Yet in the last 100 years, with the explosion of technology and media, the realm of professional services available to businesses and consumers continues to evolve and expand.  Many of today’s prominent industries did not exist 25 years ago.

    As a service provider, if you deliver services in an actual or alleged negligent manner, it could generate a major exposure to economic loss.  With that in mind, click below to begin our 20 statement survey to gain your organization’s IQRM Effectiveness Risk Audit Score as relates to professional liability.  

    Question 1

    To what degree does your organization have a complete understanding of all the activities and services that are provided to your clients and customers?

    Question 2

    How effective are the processes in place to make senior management aware of the type of economic loss exposure the business may have with your clients and customers?

    Question 3

    In addition to economic loss, how well does your organization understand the ways a lawsuit can negatively impact a service provider?

    Question 4

    To what degree does your organization understand the cause of financial damages in a professional liability claim or lawsuit?

    Question 5

    How effective are your processes and policies in protecting the organization from exposure to financial loss due to vicarious or contingent bodily injury, property damage, or personal injury should the case arise from a service provider?

    Question 6

    How effective have senior leaders been in considering the need for purchasing professional liability coverage in addition to commercial general liability (CGL) coverage?

    Question 7

    How well is your organization's leadership team at educating themselves on the “duty to defend” basis of your professional liability policy?

    Question 8

    To what extent does your organization understand that reviewing the insurance carrier’s panel counsel is an important part of the professional liability decision process?

    Question 9

    To what extent does your organization understand how a “claim” is defined in your professional liability policy?

    Question 10

    How effective is your professional services business in reporting claims so as to avoid making any assumptions as to the gravity of a potentially negligent act?

    Question 11

    How effective is communication within all parts of your organization to ensure timely reporting of all incidents that could lead to an actual claim?

    Question 12

    How effective is your organization’s communication with your attorney, insurance agent, broker and insurance company after a claim is reported?

    Question 13

    Before a claim actually occurs, to what extent has your organization had discussions around the option of using a law firm to handle your defense instead of the insurance carrier’s panel counsel?

    Question 14

    How effective is your general counsel or outside counsel in reviewing all contacts with clients to make certain that requests to add 3rd parties as additional insureds is either avoided or handled through indemnification language?

    Question 15

    How effective are you at verifying that sub-consultants maintain their own professional liability insurance and have a suspense system to follow up for updated evidence of coverage upon expiration?

    Question 16

    How careful is your review and understanding of policy exclusions and their impacts?

    Question 17

    How effective is your agent or broker in determining the availability of optional coverage enhancements?

    Question 18

    To what extent has your organization disclosed all related entities (including ownership/affiliation and nature of services) on our professional liability application and have indicated those for which coverage is desired?

    Question 19

    To what degree does your organization’s professional liability application reflect the all exposures of all entities/persons to be insured?

    Question 20

    How effectively does your organization disclose detailed claim information and make corrective measures to minimize the risk of a repeat event?

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