Do you know a professional liability application states the following: This application forms a part of your policy, if issued. What this means is the professional liability application you complete for coverage becomes a warranty and representation to the contract; if a claim happens and during the company investigation it is found there was a fraudulent answer on the application the company will have an opportunity to most likely deny the claim.
I bring this up because a professional services firm I spoke to was concerned whether or not their existing professional liability policy would provide protection because they intend to expand their professional services to the burgeoning cannabis industry. I addressed two areas of concern for them to be aware of:
- Does the professional liability application specifically request details if the company provides services to the cannabis industry.
- Check the policy exclusions and make certain no exclusions are in place that state something similar to this ‘no claims will be paid based on services provided to the cannabis or related industry’.
This article is intended for informational purposes only and is not insurance advice or a substitute for consultation with a licensed insurance broker to address your particular risk or circumstance.