What does Return of Professional Fees Exclusion mean? Read on to discover the definition & meaning of the term Return of Professional Fees Exclusion - to help you better understand the language used in insurance policies.
Return of Professional Fees Exclusion
An exclusion found in a number of professional liability policy forms precluding coverage for situations where, as part of the damages awarded to a claimant, an insured is required to return the fees charged for a negligently performed professional service. For example, if an architect draws faulty plans that cause a building to collapse, a court might also order the architect to return the fees charged for the faulty work in addition to monies for bodily injury (BI) and property damages (PD) resulting from the collapse, However, many professional liability policies contain a provision that precludes coverage for such fees based upon the rationale that professional fees constitute a business risk that should not be the subject of insurance coverage.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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