Non-insurance people often assume coverage for perils that are not there. Anytime people top sheet their policy they can often end up with the wrong conclusion as to coverage. It is important not to assume by the heading or title covered perils. “Personal Injury” is a good example.
While most Lawyers Professional Liability (LPL) policies provide “Personal Injury” coverage, this is different from “Bodily Injury.” “Bodily Injury” in an LPL Policy is normally excluded. LPL policies tightly define “Personal Injury” coverage. A good example is the AIG (National Union & Fire) LPL policy’s “Personal Injury” definition:
12. “Personal injury means
a. false arrest, humiliation, detention or imprisonment, wrongful entry, eviction or other invasion of private occupancy, abusive litigation (criminal or civil), abuse of process, or malicious prosecution;
b. a publication or utterance of a libel or slander or other defamatory or disparaging material; or
c. a publication or utterance in violation of an individual’s right of privacy.”
And the AIG policy later goes on to exclude and define “Bodily Injury and Property Damage.”
Care needs to be taken not to confuse the general liability coverage perils in a Business Owner Policy (BOP) as covering similar perils as an LPL policy. The LPL and BOP policy coverages are complementary with little to no duplication. Attorneys need both.
Careless reading can make an ass out of the reader.
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Lee Norcross, MBA, CPCU, CPIA
Managing Director, CEO
(616) 940-1101 Ext. 7080