Insurance 101 – Chapter 4 – Volume 43 – Losses Arising From Professional Services

 Losses Arising From Professional Services

The Texas Supreme Court held that the professional services exclusion in a general liability policy excludes coverage only when the insured has breached the standard of care in rendering those professional services. Because the patients in the underlying lawsuit alleged both professional and non-professional negligence, the Texas Supreme Court held that the general liability insurer, had a duty to defend the doctors’ association in the underlying lawsuit. Regarding indemnity, however, the Texas Supreme Court held that a fact issue existed about whether patients’ injuries were caused at least in part by the doctors’ rendition of professional services, in which event the policy would not cover the doctors’ association; thus, the indemnity claims were remanded to the trial court for further proceedings.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.



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