Common use of Professional Liability Policy Clause in Contracts

Professional Liability Policy. Provide a Professional Liability Insurance Policy appropriate to the Contractor’s profession providing coverage for claims for professional acts, errors and omissions arising out of services performed by the Contractor for the period of performance of this Contract. Coverage shall be in adequate quantity to protect against legal liability arising out of contract activity but no less than $1,000,000 per occurrence and $3,000,000 annual aggregate. If such policy is written on a claims-made form, the policy shall provide full coverage for prior acts or include a retroactive date that precedes the effective date of this contract. The policy shall state that coverage is provided on a claims-made coverage basis, and shall also state the retroactive date. Contractor is required to buy professional liability insurance for a period of thirty- six (36) months after completion of this contract. This requirement may be satisfied by the continuous purchase of commercial insurance or an extended reporting period.