1. Forms
2. PR
3. PR-20-03

What the form is

The PR 20 03 Additional Insured–Employees endorsement is designed to be used with the PR 00 06 Allied Health Care Providers Professional Liability Coverage Form (claims-made basis). Its primary purpose is to extend coverage under the policy to the employees of the named insured, granting them status as additional insureds. This means that if a claim arises from the professional services rendered by an employee while acting within the scope of their employment for the named insured, this endorsement helps ensure that the employee is also protected by the policy.

Classes of business it applies to

This endorsement is relevant for various allied healthcare providers that employ individuals who provide professional services. Examples include:

• Clinics or group practices employing nurses, medical assistants, therapists (physical, occupational, speech), or technicians.
• Diagnostic testing laboratories with employed lab technicians.
• Veterinary clinics employing veterinary technicians or associate veterinarians.
• Optometry practices with employed optometrists or opticians.

For instance, if a physical therapy clinic is the named insured on a PR 00 06 policy, adding the PR 20 03 endorsement would extend coverage to the employed physical therapists and physical therapy assistants for professional liability claims arising from the services they perform for the clinic.

Special considerations

• This endorsement is specifically intended for use with the PR 00 06 Allied Health Care Providers Professional Liability Coverage Form, which is a claims-made policy. Understanding the implications of claims-made coverage, including retroactive dates and extended reporting periods, is crucial.
• The definition of "employee" should be clearly understood and align with the insured's operational structure. It typically includes individuals whose conduct in performing duties related to the named insured's professional services is under the named insured's direction and control.
• Coverage for employees is generally limited to acts performed within the scope of their employment by the named insured. It would not typically cover an employee's independent professional practice outside of their duties for the named insured.

Key information for agents and underwriters

• Agents: Should always inquire about the employment status of individuals working for an allied healthcare provider. If employees are rendering professional services, this endorsement is critical to ensure they are adequately protected and to avoid potential coverage gaps for the employer. Clearly explain the scope of coverage provided to employees.
• Underwriters: The addition of employees as insureds expands the number of individuals covered under the policy, which can increase the overall risk exposure. Underwriters should assess the number of employees, their specific roles, qualifications, and experience. The premium may be adjusted based on the number of professional employees. It's important to verify that the underlying PR 00 06 policy limits are adequate to cover potential claims involving both the named insured entity and its employees.