The coverage is included within the “Who Is An Insured” section of the policy. In other words, this means that by exception, the coverage applies to the vicarious liability of the employer unless a professional liability endorsement is attached. This endorsement would have to preclude the vicarious liability of an employed professional.
Coverage applies to injury arising out of the rendering of, or failure to render, the following services during the policy period:
• Medical, surgical, dental, X-ray or nursing service/ treatment or the furnishing of food or beverages in connection with these services
• The furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances
• The coverage does not apply to:
◦ Expenses incurred by the insured for first aid given to others at the time of the accident.
◦ The “Supplementary Payments” provision and the “Insured’s Duties in the Event of Occurrence, Claim or Suit” condition. Both are amended accordingly.
◦ Any insured engaged in the business or occupation of providing professional medical services.
◦ Injury caused by any indemnitee if such indemnitee is engaged in the business or occupation of providing professional medical services.
This type of medical malpractice insurance is intended for those who have a medical exposure for operations that are incidental, but not the major function of their business. It was not designed to protect clinics, hospitals or health care service providers simply because their medical exposure is directly related to their job.
Originally, incidental medical malpractice coverage had to be inferred by exception to medical professional liability exclusionary endorsements. This was largely eliminated when incidental medical malpractice insurance was first introduced to standard general liability policies in 1976.
Its purpose is to protect those offering medical services by an entity not engaged primarily in the offering of such services, such as educational facilities or not-for-profit organizations like yours.
