Hiscox Professional Liability Portfolio - old and new policy form comparison

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1 Hiscox Professional Liability Portfolio - old and new policy form comparison Transitioning to a new form can be tricky and time intensive unless you know what s changed. We want to SAVE YOU TIME and aim to be transparent about what is, and just as importantly, what is not covered under the old and the new forms. The benefit to you - now you can spend time determining what coverage best suits your client. If this comparison doesn t answer all of your questions, please contact your local Hiscox underwriter who can further assist you. Applicable to all Allied Healthcare, Architects and Engineers and Miscellaneous Professional Liability forms Provision Old policy 1 New policy 2 Trigger of coverage Wrongful acts Alleged negligent act, error, or omission in your professional services Defense of licensing No coverage Included as coverage enhancement, outside of limits proceedings Subpoena assistance No coverage Included as coverage enhancement, outside of limits Punitive damages Excluded except where insurable by law, up to $250K sublimit Fines, penalties, taxes or sanctions All fines, penalties, taxes or sanctions are excluded from definition of damages Specifically included in definition of damages, where insurable by most favorable applicable jurisdiction, up to full limits Only fines, penalties, taxes or sanctions against insureds are excluded Personal injury Covered wrongful act Expanded definition includes personal and advertising injury Payment of claimant s attorney fees Explicitly covered as damages Supplemental payments Prior knowledge Up to $250 per day, up to $5,000 per claim, erodes limits Insured had to establish no prior knowledge of wrongful act to trigger Insuring Agreement Up to $250 per day, up to $10,000 per claim, outside of limits Prior knowledge

2 Provision Old policy 1 New policy 2 Definition of claim Cost of complying with injunctive relief Any notice received by the insured for damages or non-monetary relief Written assertion of liability or written demand for financial or non-monetary relief Specifically excluded Liquidated damages Specifically excluded Criminal proceedings Cost to defend criminal proceedings excluded from Specific for criminal proceedings definition of claim expenses Reporting of claims As soon as practicable, but immediate written notice for any summons, arbitration demand or other notice of legal proceeding Written notice as soon as possible for all claims or other covered matters Arbitration demand against insured If insured receives arbitration demand which it can accept or reject, can accept only with our written consent Data privacy Explicit (except for covered HIPAA claims for AHC forms) Unsolicited telemarketing/ Exclusion inadvertently left off combined PL/GL form Explicitly excluded in all forms Telephone Consumer Protection Act Action against us No action against us by insured unless insured has fully complied with entire policy and insured s obligation for claim has been finally determined by judgment or settlement Change in control If named insured merges into or is acquired by another entity, notice is required to us within 30 days; coverage is limited to claims arising from professional services performed prior to change in control, unless we and insured agree otherwise Intentional acts/fraud Final adjudication and severability for indivdual insureds Final adjudication and full severability for individual insureds and partial severability for the entity

3 Provision Old policy 1 New policy 2 Intellectual property Misappropriation/ commingling of funds Definition of pollution Does not exclude publicity rights, cyber squatting, and moral rights violations Any solid, liquid, gaseous, or thermal irritant, contaminant or toxin, including but not limited to smoke, vapor, soot, fumes, acids, alkalis, chemicals, metals, silica, lead, lead compounds or materials containing lead, radon, asbestos, electromagnetic radiation or waste of any like substances. In addition to pollutants to be disposed of, waste also includes materials to be recycled, reconditioned, or reclaimed Expressly excludes publicity rights, cyber squatting, and moral rights violations Expressly excluded Means any solid, liquid, gaseous, biological, radiological, or thermal irritant or contaminant, including smoke, vapor, asbestos, silica, dust, nanoparticles, fibers, soot, fumes, acids, alkalis, chemicals, nuclear materials, germs and waste. Waste includes, but is not limited to, materials to be recycled, reconditioned, or reclaimed (new items noted in italics) ERISA For Based upon or arising out of, to be amended when applicable Claim expense Warranties/guarantees Includes all other reasonable and necessary fees, costs and expenses incurred by the insured with our written approval No carveback for liability which would exist in the absence of the warranty or guarantee Does not include all other reasonable and necessary fees, costs and expenses incurred by the insured with our written approval Express carveback for liability which would exist in the absence of the warranty or guarantee Seasonal and temporary employees as insureds Not expressly included Included in definiton of employee 1 Old policy - Allied Healthcare: AHC P001 CW (04/09); Architects and Engineers: ANE P001 CW (04/09); Miscellaneous Professional Liability: MPL P001 CW (06/09) 2 New policy - Allied Healthcare: WCLAHC P0001 CW (12/12); Architects and Engineers: WCLANE P0001 CW (12/12); Miscellaneous Professional Liability: WCLMPL P0001 CW (02/13)

4 Hiscox Professional Liability Portfolio Applicable to Allied Healthcare form Provision Old policy 3 New policy 4 HIPAA violations Available only as endorsement Sublimit included in base form as coverage enhancement Sexual misconduct Excluded Sublimit included in base form as coverage enhancement Independent contractors Excluded Specifically included in definition of insured Bodily injury to employee Excludes BI and any resulting emotional distress to employee and certain other individual insureds Excludes BI and emotional distress to employee and other individual insureds except students Reporting of claims Claims made Claims made and reported, but with 60-day auto ERP Managed Care Services Excluded Insured v. insured Exclusion for claim by insured or affiliate against another insured or affiliate Express carveback for claims by insured or affiliate brought in their capacity as a client of another insured or affiliate 3 Old policy - Allied Healthcare: AHC P001 CW (04/09) 4 New policy - Allied Healthcare: WCLAHC P0001 CW (02/13)

5 Hiscox Professional Liability Portfolio Applicable to Architects and Engineers form Provision Old policy 5 New policy 6 Pre-claim assistance None Up to $50K in pre-claim assistance, outside of limits Independent contractors Not listed in definition of insured Specifically included in definition of insured Pollution Property damage Bodily injury Excluded with carveback for pollution directly arising from performance of professional services Excluded with carveback for PD directly arising from performance of professional services Excluded with carveback for BI directly arising from performance of professional services Explicitly covered for pollution directly arising from performance of professional services, up to full limits Explicitly covered for PD directly arising from performance of professional services, up to full limits Explicitly covered for BI directly arising from performance of professional services, up to full limits Mold, but excluded by endorsement Explicitly covered with sublimit or full limits FHA/OSHA/ADA regulatory coverage Asbestos No coverage Excluded except claims arising from insured specifying asbestos-containing product or material Up to $25K regulatory defense and response costs, outside of limits No asbestos for design professionals, construction managers, and developers; no change for contractors Third-party discrimination Explicitly covered up to full limits Deductible credit Available as endorsement Included in base form Owned entity Insured v. insured applies to any entity in which insured has over 15% ownership Insured v. insured applies to any entity in which insured has over 25% ownership Bankruptcy Exclusion for any claim arising from bankruptcy or insolvency of insured with carveback for claim based on performance of professional services No except on developers form Anti-trust/deceptive trade practices Leased and volunteer employees as insureds Not expressly included Expressly excluded Included in definiton of employee 5 Old policy - Architects and Engineers: ANE P001 CW (04/09) 6 New policy - Architects and Engineers: WCLANE P0001 CW (02/13)

6 Hiscox Professional Liability Portfolio Applicable to Miscellaneous Professional Liability Provision Old policy 7 New policy 8 Acquired entity Automatically covered for 90 days Subsidiaries acquired during policy period covered automatically, coverage for acquired entities with less than 50% insured ownership available by endorsement Third-party discrimination Automatically included for certain industries, excluded for others Sexual misconduct Explicitly excluded. Stand alone coverage option available Excluded professional Excluded via endorsement on select accounts Exclusion built into policy services (attorney, accountant, RIA, insurance agent/broker, security broker/dealer) Medical malpractice Excluded via endorsement on select accounts Exclusion built into policy Anti-trust/deceptive trade Expressly excluded practices Leased and volunteer employees as insureds Not expressly included Included in definiton of employee 7 Old policy - Miscellaneous Professional Liability: MPL P001 CW (06/09) 8 New policy - Miscellaneous Professional Liability: WCLMPL P0001 CW (02/13) This comparison does not address every word or provision that has changed in the new policy forms. In the new forms we improved the structure and language, and in this comparison we attempted to address all substantive changes between the old and new forms. Please contact your underwriter for information on additional changes/limitations. About Hiscox in the US: /13