(September 2010)

INTRODUCTION

Veterinarians are a class of business frequently written on the Insurance Services Office (ISO) Businessowners Coverage Form. While the unendorsed policy excludes professional liability, this coverage is very important to veterinarians. BP 08 05–Veterinarians Professional Liability is used to add this coverage.

ELIGIBILITY

This endorsement is available only to veterinarians who treat household pets. Veterinarians who treat or provide any services to the following animals or situations are not eligible, even when their primary specialty is treating household pets:

• Animals bred or used for professional racing, show or delivering

• Animals used in theatrical events or performances, such as rodeos, circuses and zoos

• Operations involving obedience or training schools

• Animals used in laboratory experiments

• Animal shelters

• Commercial operations, such as cattle or hog confinement facilities

• Livestock auctions

• Prize livestock

COVERAGE ANALYSIS

This endorsement modifies BP 00 03–Businessowners Coverage Form Section II–Liability.

A. Business Liability

This endorsement uses the term "other injury" to describe professional coverage provided. Because this coverage is incorporated into the Businessowners Coverage Form, all provisions under A.1. Business Liability apply to other injury just as they do to bodily injury, property damage, and personal and advertising injury.

B. Coverages

This endorsement is an extension of coverage, not an additional coverage. The same coverage available under Coverage A is also available to the professional aspects of the veterinarian's operations. A further extension is that coverage applies if injury occurs because of an insured's participation as a member of a formal accreditation, standards review, or equivalent professional board or committee.

Example: Vern is a veterinarian and Barb, his wife, is a brain surgeon. Both are named insureds on the Businessowners Coverage Form. If Vern purchases professional liability coverage, it applies to only the professional liability arising out of his providing or failing to provide veterinary services. It does not provide the professional liability coverage Barb needs. If Vern serves on the state standards review board for veterinarians, his professional liability exposure for that service is also covered. However, if he serves as a board member oh his homeowners association, this coverage does not apply to that liability exposure.

C. Exclusions

The Businessowners Coverage Form liability exclusions are changed. One is amended, two are deleted, three are added, and one is changed in part.

1. Contractual Liability is amended to not allow the exception to an insured contract. The amended exclusion simply states that professional liability coverage does not apply to exposures the insured assumed in a contract or agreement unless it would have already had them if there were no contract or agreement.

2. Exclusions 1.j. Professional Services and 1.k. Damage to Property (4) and (6) do not apply. 1.m. Damage To Your Work also does not apply. These exclusions are removed only with respect to animals the veterinarian treats in its practice.

Note: Deleting the first exclusion acknowledges that professional liability coverage is provided. Deleting the second and third is important because damage to animals is considered property damage, not bodily injury. If these two exclusions were not deleted, all coverage provided by the professional coverage would be eliminated.

3. Three exclusions are added. The coverage this endorsement provides does not apply to:

a. Bodily, personal, or advertising injury, other injury, or property damage arising from criminal acts the insured or any person it is responsible for commits. This includes, but is not limited to, fraud.

Example: Phyllis brings Fushi Queen Kao in for grooming and a bath. She has an impeccable pedigree and is extremely valuable. The veterinarian's assistant accepts $5,000 to swap and replace her with a nearly identical substitute. However, the substitute runs away from Phyllis and returns to the accomplice. Phyllis is devastated and keeps looking for her dog. The fraudulent act is eventually discovered. Phyllis sues but coverage is denied because the veterinarian was legally responsible for the assistant who committed the fraudulent act.

b. Liability resulting from theft of any animal

c. Bodily injury, property damage, or other injury caused by or resulting from any fire

D. Who Is An Insured

Who Is An Insured is changed. The major differences are:

1. The term "volunteer" is removed. This means that there is no professional coverage for a volunteer who works with the veterinarian.

2. Item 2.a.(1)(d) is removed. This removes employees as insureds for bodily injury, personal and advertising injury, or other injuries due to professional services.

3. Item 2.a.(2) is added. It states that employees are not insureds for bodily injury, property damage, personal and advertising injury, or other injuries that arise due to the professional services unless they are veterinarians. In that case, they are covered for such injuries as they relate to the practice of veterinary medicine but only in connection with the named insured's business.

E. Liability And Medical Expenses Limits Of Insurance

This section amends the limit of insurance as it relates to professional liability coverage. It states that the liability and medical expenses limits on the declarations are the most paid in any one occurrence. This coverage does not have a separate limit of insurance.

F. Definition

The definition of occurrence is amended and clarified for the purpose of this endorsement to include any act or omission related to providing or failing to provide any professional veterinary service.