Contractual liability coverage extension PR 04 01 09 08

Additional insured—employees PR 20 00 09 08

Additional insured—health care professionals PR 20 08 09 08

Additional Insured – controlling interest PR 20 09 09 08

Exclusion—non-teaching activities PR 21 00 09 08

Exclusion—employees as insureds PR 21 01 09 08

Exclusion—partnership or corporation PR 21 02 09 08

Consent to settle PR 24 00 09 08

Waiver of charitable immunity PR 24 03 09 08

 Deductible Liability Insurance PR 03 00 09 08

 This endorsement modifies the blood banks professional liability coverage form and the hospital professional liability coverage form. PR 03 00 simply declares that the amount paid by the insurer on behalf of the insured is excess to the deductible listed on the endorsement; the insured is responsible for the deductible amount. However, the insurer may pay all or part of the deductible to effect settlement of any claim or lawsuit, and if this is done, the insured is required to reimburse the insurer. The deductible is per medical incident.

 The other professional liability coverage forms have different deductible endorsements. The endorsements have different endorsement numbers but the wording is the same as in this endorsement.

 Contractual Liability Coverage Extension PR 04 01 09 08

 This endorsement modifies the hospital professional liability coverage form; it replaces the contractual liability exclusion with another version. PR 04 01 excludes coverage for contractual liability but allows exceptions under two instances: for liability the insured would have in the absence of the contract or agreement; and for liability assumed in a contract or agreement pertaining to the operation of the named insured's business under which the tort liability of another is assumed.

 The latter exception is taken from the CGL form's definition of "insured contract". There is no mention of "insured contract" on the hospital professional liability coverage form, but PR 04 01 09 08 seeks to allow a portion of the insured contract exception to the contractual liability exclusion to be in force for the insured. For more information on an "insured contract", see Commercial General Liability Definitions and see CGL Coverage Form—Coverage A. Also, see Contractual Liability Exposure.

The other professional liability coverage forms have contractual liability coverage extension endorsements available, using the same language as noted in this endorsement.

 Additional Insured—Employees PR 20 00 09 08

 PR 20 00 09 08 modifies the physicians, surgeons, and dentists professional liability coverage form; the endorsement changes parts of the insuring agreement, the who is an insured clause, the limits of insurance section, and the other insurance section.

 The physicians coverage form states that the insurance applies if the injury arises out of the individual insured's profession as a physician, surgeon, or dentist. PR 20 00 adds the following: injury arising out of the insured employee's acts or omissions, within the scope of such insured's employment by the named insured or while performing duties related to the conduct of the named insured's practice. Then, PR 20 00 amends the who is an insured section to include as an insured, the named insured's employees (other than employed physicians, surgeons, or dentists). These two amendments make the point that the named insured's employees are considered as insureds under the physicians professional liability policy when they are acting within the scope of employment.

 The limits of insurance section of the physicians professional liability form states that the aggregate limit and the each medical incident limit apply separately to each named insured—the separation of insureds clause. PR 20 00 adds to this a separate aggregate limit and a separate each medical incident limit to apply collectively to all insureds, other than the named insureds. In other words, if the named insured has five employees and they are made insureds through the use of PR 20 00, those five employees have to share an aggregate limit and a medical incident limit together. Each of the employees is an insured, but each does not have his or her own separate limit of insurance; the limit is shared. The endorsement does not dictate how the limit is to be shared.

 PR 20 00 amends the other insurance clause by noting that the insurance provided to the employee through PR 20 00 is excess over any other insurance issued to the employee. If that other insurance is also excess, PR 20 00 declares that coverage for the employee is shared, although the endorsement does not say how.

 The other professional liability coverage forms also have additional insured—employees endorsements.

 Additional Insured—Health Care Professionals PR 20 08 09 08

 This endorsement applies to health care professionals not employed by the named insured. It amends the who is an insured clause on three professional liability coverage forms by making the person named in the schedule of PR 20 08 09 08 an insured, but only for acts or omissions while performing duties related to the conduct of the named insured's business as a professional health care facility. The three affected coverage forms are: blood banks, diagnostic testing laboratories, and hospital professional liability coverage forms.

Additional Insured – Controlling Interest PR 20 09 09 08

This endorsement applies to those with a controlling interest in the premises the insured leases or occupies. PR 20 09 09 08 amends the who is an insured clause on two professional liability forms, blood banks and hospitals,  by making the person or organization listed in the schedule an insured, but only for their vicarious liability arising out of a "medical incident" because the person or organzation has financial control over the insured or owns, controls or maintains the premises the insured leases or occupies. The affected forms are blood banks and hospitals.

 Exclusion—Non-Teaching Activities PR 21 00 09 08

 This endorsement modifies the physicians, surgeons, and dentists professional liability coverage form by limiting the professional liability coverage. PR 21 00 09 08 amends the insuring agreement on PR 00 01 so that the insurance applies to injury only if the injury arises out of the practice of the individual insured's profession as a teaching physician or surgeon. The individuals named in the schedule on PR 21 00 must be a person who teaches and has no private practice. This limiting function of PR 21 00 is emphasized by an exclusion on the endorsement that declares "this insurance does not apply to injury arising out of the rendering of or failure to render any professional services while the physician named … is engaged in activities other than … duties as a teaching physician or surgeon".

Exclusion—Employees As Insureds PR 21 01 09 08

 There are three professional liability coverage forms modified by this endorsement: blood banks, diagnostic testing labs, and hospital. PR 21 01 09 08 simply deletes the who is an insured clause concerning employees of the named insured. With the use of this endorsement, employees are no longer considered as insureds under the named insured's professional liability coverage form.

Exclusion—Partnership Or Corporation PR 21 02 09 08

 This endorsement affects four professional liability coverage forms: allied health care providers, optometrists, physicians and surgeons, and veterinarians. PR 21 02 09 08 deletes coverage B from these forms so that partnerships, limited liability companies, associations, and corporations do not have professional liability coverage. Any references to such coverage is deleted from those particular coverage forms.

Consent to Settle PR 24 00 09 08

 PR 24 00 09 08 adds the promise that the insurer will not settle any claim or lawsuit without the named insured's consent to the following professional liability coverage forms: allied health care providers, optometrists, physicians and surgeons, and veterinarians. This may be an important item to some professional insureds in order to protect their public reputations.

 The endorsement goes on to state that if the insurer recommends a settlement to the named insured and the named insured does not consent, the most the insurer will pay in the event of a later settlement or judgment is the amount for which the claim or lawsuit could have been settled. In other words, if the insurer wants to settle for a certain amount and the plaintiff agrees with that figure, but the named insured declines, the named insured will have to pay for any final amount over that first figure. The right of the named insured to veto any prospective settlement comes with a price.

 Waiver of Charitable Immunity PR 24 03 09 08

 PR 24 03 09 08 is applicable to all of the medical professional liability coverage forms. Some health care professionals perform services on a charitable basis for churches, social service agencies, or the government. On that basis, the insured professionals are sometimes granted charitable immunity; in other words, if the insured injures someone while performing the charitable services, the insured has an agreement that it will not be sued for those injuries. PR 24 03 is saying that even if the insured has that immunity, the insurer will not put forth that immunity agreement as a bar to any claim or lawsuit that might be filed against the insured, unless the insured requests the insurer to do otherwise.

Original  July 9, 2018