The secondary PLI insurance now includes several coverage enhancements as follows:
Whistleblower coverage: This coverage is intended to provide compensation for reasonable legal expenses incurred for consultation and advice as well as compensation for lost income replacement resulting from loss of employment due to the activity as a whistleblower by you, up to $25,000. This section of the coverage is provided on a primary basis.
Disciplinary, Regulatory or Administrative Expense Reimbursement: The insurer will reimburse you, upon written request, for reasonable legal fees and expenses incurred by you in responding to any Federal, Provincial, or Municipal disciplinary, regulatory or administrative action commenced directly against you provided that the action arises out of professional services performed by you or alleged to have been performed by you for a maximum limit of $30,000. This is not intended to cover any damages, fines, taxes or penalties.
Loss Documents Reimbursement: Reimbursement for reasonable expenses incurred in the event that any of your written or printed documents have been destroyed, damaged, lost or mislaid and after diligent search cannot be located up to a limit of $5,000. This does not include electronic documents.
Crisis Event and Reputation Management: Reimbursement to you with prior consent, for crisis event expenses paid, subject to a maximum of $15,000 per policy year. A crisis event expenses are reasonable fees, costs, ad expenses paid by you, with with the insurer’s prior written approval, for consulting services by a public relations firm to you in response to reputational harm resulting from the delivery of professional services.
Retired Business Owners: If you are a business owner that is retired, you now have access to coverage but subject to a waiting period of 6 months, 2 years or 5 years, depending on the reason of the closure of your business. Note that as a business owner, you are still responsible for securing the appropriate insurance required to protect your business entity as coverage under this policy only extends to you as an individual. Secondary Professional Liability insurance protects individuals against liability or allegations of liability for injury or damages that have resulted from a negligent act, error, or omission that has arisen out of your professional capacity as an engineer.
This coverage is supplementary to any existing professional liability insurance, which members may have access to through their employers or their own policies.
It is important to note that coverage is afforded on a “claims-made and reported” basis and will respond to claims made during the policy period. This means that the policy in place when a claim is made will be the policy to respond – regardless of when the incident occurred. Therefore, it is extremely important there is no lag or gap in coverage between policy periods. Maintaining OSPE membership will ensure that you are continuously protected.
This coverage is not for firms, corporations, public entities or employers as these groups may be expected to carry specific professional liability coverage as part of their business. If you or your business offer and provide professional engineering services to the public, you or your business must hold a Certificate of Authorization (C of A). C of A holders assume professional responsibility for the services provided and are generally required to carry Primary Professional Liability insurance. Further information about Primary Professional Liability Insurance available through the OSPE program can be found here.
Further details on Secondary Professional Liability Insurance