Professional insurance is very important for lawyers. Unfortunately, every lawyer is not able to secure coverage that they require at a standard market because they are considered a “distressed” risk. The question is, what exactly does “distressed” mean?
A “distressed” risk is one that has difficulty securing professional liability insurance for claims frequency, claim severity or complaints, or disciplinary action. It describes any damages or disciplinary history of law firms or companies facing more challenges in finding professional liability insurance and generally have to settle for less coverage at a much higher premium. You can also get more information about Professional Liability Insurance Coverage via http://www.csrisks.com/products/errors-omissions-miscellaneous/.
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Surplus lines are often referred to as a negative connotation because insurance products are not covered by state insurance guaranty associations. However, not all surplus lines insurance is created equal. Surplus lines insurance rating agencies are reviewed by insurance companies such as A.M. B
Professional liability companies will have facilities to accommodate their surplus lines or insured applicants who do not qualify under the guidelines of their standard program. But it will be received in the line of advantages if a more acceptable premium could be charged for the exposure presented. There are several A and even A + market approaches in this arena.