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CSEP Professional Liability Insurance Program
Generally speaking, the Professional Liability Insurance under the CSEP program covers an insured when there is a claim made by a third party (i.e., a client) alleging an error, omission, or negligent act in the rendering of professional services within the scope of practice of CSEP CEP or CSEP CPT. One of the key factors that must be understood about the insurance is that it is on a “Claims Made” basis. What this means to CSEP members who elect to purchase the insurance, is that regardless of when the alleged “incident” took place, the insurance policy responds provided you notify the insurer (or Marsh Canada) AS SOON AS YOU ARE MADE AWARE THAT A CLAIM COULD BE FORTHCOMING. If you have purchased the coverage and then made aware of a potential claim, you must notify the insurer immediately in order to comply with the claim reporting clause of your policy.
For example, let´s say that you were working with a client two years ago and as far as you are aware, nothing went wrong. Then, out of the blue, you are notified that the client had back injuries and they suspect it is as a result of the services you provided two years ago. You must notify the insurer immediately and subject to policy terms, conditions and exclusions, a file would be opened and the alleged claim would be dealt with by the insurer with your co-operation.
In a Claims Made policy, claims are only covered if they are made against an insured during the policy period and reported to the insurance company during the policy period. Claims, actual or potential, must be reported as soon as you are made aware of a possible claim. No written or oral statement should ever be made by you unless under the advice of the insurer. Failure to comply with the claims reporting provisions of the policy could result in the Insurer denying coverage for the claim under your policy.
This explanation of the reporting provisions of your policy has been provided in order to assist you in understanding policy´s requirements and are of a general nature. Marsh, as an insurance representative, does not provide legal advice, and you should not rely upon this explanation, as a legal interpretation of the policy provisions. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies.
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