Educators' Professional Liability Insurance
Educators' Professional Liability Insurance is included in all TACT memberships.
What the Policy Covers
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1) Broad Insurance Clause Liability
A True Professional Liability Policy Errors and omissions coverage to $2,000,000 plus legal fees for claims for damages arising out of a member's duties as a professional educator, researcher, administrator or librarian, including all defense costs. The occurrence giving rise to such claims is simply defined as an event which results in damages to some other person.
2) Attorney Fees Reimbursement Clause
This coverage provides up to $5,000 for reimbursement of attorney fees in instances of accusations not insured under Coverage A such as: Criminal charges, allegations of sexual misconduct, actions involving dismissal, unjustified denial of tenure or promotion, and other professional rights and duties. In some of these situations, payment of attorney fees is contingent on the educator's case prevailing. In such cases, $750 (for consultation or otherwise) is reimbursed without regard to the outcome.
3) Provides up to $1,000 for payment of bail bonds
Special Features
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Valuable Protections
The policy coverage with respect to bodily injury, emotional distress or intimidation is vital to the professional educator. Relevant sections of our policy make it clear that Coverage A applies ($2,000,000 limit plus defense costs) regardless of whether the act be deemed civil or criminal. Furthermore, the customary exclusion of damages resulting from intentional acts has been carefully worded to insure coverage.
Outside Activities
As long as the educator is within the scope of his/her professional duties, the policy covers liability for injury to students and others while the educator is conducting visits to industrial and commercial establishments, entertainment centers, outings, picnics and other similar school functions, subject to specific automobile, watercraft and aircraft exclusions.
Product Liability
There is no product liability exclusion. While the serving of food is usually a responsibility of the school, this policy would also provide liability insurance for furnishing of food in connection with trips, picnics, parties and similar events.
Questions & Answers
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Q- Are libel and slander covered?
A- Yes, while the member is engaged in activities as a professional educator.
Q- A student is physically injured during a class, field trip, or other college-sponsored activity and alleges negligence on the part of the faculty member. Is the faculty member covered?
A- The accident falls under Coverage A.
Q- A faculty member claims damages as a result of the annual evaluation he received by his chair or supervisor. Is the administrator covered?
A- Yes, Coverage B applies up to $5,000.
Q- Are faculty, staff, and administrators protected against allegations concerning discrimination and affirmative action violations?
A- Yes, Coverage B would apply. Reimbursement of attorney fees up to $5,000 for the educator would be paid if the allegations were dismissed.
Q- A faculty member is denied tenure or promotion and alleges improper evaluation by colleagues serving on peer review tenure or promotion committees. Are the committee members covered?
A- Yes, Coverage B applies up to $5,000 if the committee decision is upheld.
Q- A claim for monetary damages is made against a faculty member as a result of a grade dispute. Is the instructor protected?
A- Yes, under Coverage A.
Q- A claim is falsely and fraudulently made against an educator for bodily harm, emotional distress or intimidation to a student alleging negligence on the part of the educator. Is this covered?
A- Yes. The duty of the insurance company to defend is far greater than the duty to pay when an insured is judged liable, but it must defend even if the allegation be false, groundless or fraudulent.
Q- What coverage is there in the policy for a member who feels unjustly terminated or unjustly censured?
A- The policy covers attorney fees up to $5,000 provided termination or allegations at a hearing are resolved in favor of the educator. In one case, an educator was suspended and asked to resign although he felt he had done nothing to void his contract. Negotiations resulted in the educator recovering requested pay, a contract of release and a recommendation. His attorney's fee was paid under Coverage B.
Q- An educator is accused of sexual misconduct with a student or other teacher. Is coverage provided?
A- Yes, under Coverage B only. This may or may not be a criminal action, but whether criminal or civil, attorney fees up to $5,000 are payable whether or not the educator is exonerated.
What the Policy Pays
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Up to $2,000,000 per Insured per occurence/$3,000,000 per occurrence, plus the cost of defense, investigation and legal fees.*
Up to $5,000 per claim per Insured. Coverage for criminal proceedings and/or sexual misconduct limited to $10,000 aggregate per member per policy year.
Up to $1,000 for payment of bail bonds.
*Note: The duty of the insurer to defend extends even to groundless, false and frivolous suits or accusations. This is a TACT master policy. For legal assistance, the TACT office must have received your application for membership along with your nonrefundable premium AND your membership must be current at the time of the action or allegation.
Educators' Professional Liability Insurance Summary of Coverage
Educators' Professional Liability Insurance
(Provided to members of the Texas Association of College Teachers)
SUMMARY OF COVERAGE
The Company agrees with the Insured and the Policyholder, named in the Declarations and made a part hereof, in consideration of payment of the premium and in reliance upon the representations made in the application and subject to the limits of liability, exclusions, conditions, and other terms of this policy, as follows: INSURING AGREEMENTS
Coverage A - Liability Coverage
A. The Company will pay up to $2,000,000 plus legal fees on behalf of the Insured all sums which the Insured shall become obligated to pay by reason of liability imposed by law for monetary damages resulting from any claim made against the Insured arising out of an occurrence in the course of the activities of the Insured in his/her professional capacity and caused by any acts or omissions of the Insured or any other person for whose acts the Insured is legally liable. The Company shall defend any suit seeking monetary damages which are payable under the terms of the policy, even if such suit be groundless, false or fraudulent; but the company may make such investigation, negotiation and settlement of any claim or suit as it may deem expedient.
B. As respects Coverage A, this policy applies only to occurences (as defined) during this policy period.
Coverage B - Reimbursement of Attorney Fees
A. The Company will reimburse the Insured up to $5,000 for reasonable and necessary attorney fees which the Insured is legally obligated to pay to an attorney for the defense of any action brought against such Insured arising out of the following activities, but without obligation to furnish such attorney:
1. Incurred in the defense of a criminal action or proceeding against the Insured arising out of activities of the Insuredin his/her professional capacity;
2. Incurred in the defense of an action or proceeding against the Insured involving dismissal, tenure, salary, leave of absence, assignment, resignation or other professional rights, duties and responsibilities, arising within the scope of employment, provided, however, that final judgment is rendered in favor of the Insured. However, the Company will pay a maximum of $750 for reimbursement of attorney fees without regard to final judgment;
3. Incurred in the defense of an action or proceeding against the Insured involving the issuance, suspension, cancellation or revocation of any credential, life diploma, or certification document issued by any governing Board, provided, however, a final judgment is rendered in favor of the Insured. However, the Company will pay a maximum of $750 for reimbursement of attorney fees without regard to final judgment;
4. Incurred in the defense of an action or proceeding based upon an alleged violation of civil rights guaranteed by the Constitution or civil rights statutes of the United States or any state arising out of activities of the Insured in his/her professional capacity and not otherwise covered; and
5. Incurred in the defense of an action or proceeding alleging intentional or negligent sexual misconduct;
B. As respects Coverage B, this policy applies only to actions resulting from activities of the Insured which first take place during the policy period.
Coverage C - Bail Bonds
A. The Company will pay the premium for bail bond(s) required of the Insured arising out of activities of the Insured in his/her professional capacity, not to exceed $1,000 per bail bond, but without obligation to apply for or furnish such bond(s).
B. As respects Coverage C, this policy applies only to any bail bond(s) required as a result of activities of the Insured during the policy period.
DEFENSE AND SUPPLEMENTARY PAYMENTS
A. Under Coverage A, the Company shall have the right and duty to defend any suit against the Insured seeking monetary damages because of activities of the Insured in his/her professional capacity even if any of the allegations of the suit are groundless, false or fraudulent. The Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of the Company's liability has been exhausted by payment of judgments or settlements. The Insured, except at his/her own cost and for his/her own account, shall not, without written consent of the Company, make any payment, admit any liability, settle any claim, assume any obligation or incur any expense. The Company shall have the right, but not duty, to appeal any judgment.
B. The Company will pay in addition to the applicable limit of liability for Coverage A:
1. All expenses incurred by the Company, all costs taxed against the Insured in any suit defended by the Company, and all interest on the entire amount of any judgment therein which accrues after entry of the judgment and before the Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of the Company's liability thereon;
2. Premiums on appeal bonds required in any suit defended by the Company, premiums on bonds to release attachments in any such suit, but in no event for an amount in excess of the applicable limit of liability of the policy. The Company shall have no obligation to apply for or furnish any such bond(s);
3. Expenses incurred by the Insured for first aid to others for bodily injury resulting from an occurrence to which this policy applies; and
4. Reasonable expenses incurred by the Insured at the Company's request in assisting the Company in the investigation or defense of any claim or suit, including actual loss of earnings not to exceed $100 per day.
DEFINITIONS
A. The term occurrence only applies to Coverage A. It means an event which results in monetary damages to someone other than the Insured. An occurrence can involve a single, sudden event or the continuous or repeated exposure to the same conditions. If the latter, the exposure shall constitute a single occurrence and shall be deemed to have occurred as of the most recent exposure to said conditions.
B. The term policyholder means the association named in Item 1 of the Declarations.
C.1. As respects Coverage A, the term claim means an oral or written notice from any party that it is their intention to hold an Insured responsible for any acts or omissions of the Insured arising out of an occurrence in the course of activities of the Insured in his/her professional capacity.
C.2. As respects Coverage B, the term claim means an oral or written notice from the Insured or the insured's attorney requesting reimbursement for attorney fees at a result of an action or proceeding arising from activities of the Insured in his/her professional capacity.
D. The word Insured, wherever used, shall mean a person who is a regular member of the Association or an affiliate member employed as part-time faculty, graduate assistant or assistant instructor and has elected to be covered under this policy. A member who has so elected is a participating member. If the participating membership is a renewal, the word Insured includes any members covered under the expired policy who reapply within 30 days of the inception of this policy.
E. The phrase activities of the Insured in his/her professional capacity, wherever used, shall mean activities of the Insured in his/her duties as an Administrator, Educator, member of a Teaching Staff, Librarian, Counselor, or other Professional, Service or Research Personnel, subject to the exclusions of this policy.
POLICY PERIOD
All periods of insurance shall begin and end at 12:01 AM at the address of the policyholder, except that the policy period for a new member (if all members are covered) or a newly participating member (if insurance is optional) shall begin at the time and date such member's application or election is received and approved by the association and shall expire on the expiration date specified in the Declarations or, if terminated earlier, such lesser period.
LIMITED WORLDWIDE LIABILITY COVERAGE
This policy shall apply anywhere in the world with respect to an occurrence arising out of the covered activities of any Insured permanently domiciled in the United States of America though temporarily outside the United States of America, its territories or possessions, or Canada. The original suit for damages because of any such injury or damage must be brought within the United States of America, its territories or possessions, or Canada.
EXCLUSIONS
The Company shall not be obligated to make any payment or defend any lawsuit in connection with any claim against the Insured arising from:
A. Activities of the Insured not carried on in his/her professional capacity;
B. Activities of the Insured carried on in a private business or private professional endeavor;
C. The ownership, maintenance, operation, use, loading or unloading of: (1) vehicles of any kind, other than farm tractors not operated on public highways; (2) watercraft; or (3) aircraft: however, coverage would apply to: (a) an Insured driver training instructor while riding as a passenger in the course of duties as an employee of a college; (b) an Insured vocational education instructor in the course of regular instruction carried on in a shop provided by the school; and (c) an Insured while supervising students entering or exiting a school bus. The coverage afforded herein does not apply when the Insured has any other insurance of any kind whatsoever which affords coverage for such liability.
D. Liability assumed by an Insured under any contract or agreement.
E. War, whether or not declared, civil war, insurrection, rebellion, or revolution, or to any act or condition incidental to any of the foregoing:
F. Any obligation for which the Insured or any carrier may be held liable under Worker's Compensation, Unemployment Compensation, Disability Benefits or similar laws;
G. The rendering, failure to render, teaching or supervising of medical, surgical, dental, nursing, or other similar services except, however, coverage would apply to:
1. First aid and regular nursing services rendered by a school nurse employed for the purpose of rendering such services;
2. First aid and regular nursing services rendered by a certified health aide employed for the purpose of rendering such services under the supervision of a school nurse.;
3. Physical therapy rendered by a licensed physical or occupational therapist employed for the purpose of rendering such services;
4. The administration of oral prescription medicine to a student by an Insured, provided the Insured has received advance written authorization for such administration from the parent or guardian of the student;
5. Emergency first aid services rendered by an Insured when a school nurse or other medically trained person is not readily available; or
6. Psychological therapy or treatment rendered by a counselor employed for the purpose of rendering such services;
H. Under Coverage A, to criminal acts other than corporal punishment;
I. Liability as respects claims brought by teachers or other employees of any college against the Insured, as defined by the policy, except reimbursement of attorney's fees as provided under Coverage B; this exclusion will not apply to claims or suits by or on behalf of other employees of a college arising directly out of service by the Insured on professional peer review committees in carrying out the directives of such committees;
J. An intentional act of, or at the direction of, the Insured, whether or not any resulting damages are intended or foreseeable, except for such damages resulting from corporal punishment of any student administered by, or at the direction of, the Insured;
K. Any action for declaratory judgment, injunctive relief, or other similar proceeding, except as provided in Coverage B, unless the relief prayed for also seeks damages which are covered under Coverage A;
L. Activities of an Insured while acting as a member of any governing board or similarly constituted body;
M. Actual or alleged sexual misconduct, regardless of whether such misconduct is alleged to be intentional or negligent, except as provided under Coverage B.A.5.;
N. Any claims, accusations or charges brought against an Insured, and to any obligation or duty of the Company to afford defense for such claims, accusations or charges which are made because of any damages or injury arising out of Human Immune Deficiency Virus (HIV) or Acquired Immune Deficiency Syndrome (AIDS); or
O. Any claim against an Insured by the policyholder or any parent, affiliate or subsidiary or the policyholder.
LIMITS OF LIABILITY
Regardless of the number of Insureds under the policy, persons or organizations who sustain damages payable under this policy, and/or suits brought on account of coverage afforded by the policy, the Company's liability is limited as follows:
A. The limit of liability stated in Item 3 of the Declarations as applicable to Coverage A, per Insured, per occurrence is the maximum limit of the Company's liability for any one Insured arising from any one occurrence;
B. Subject to A. above, the limit of liability stated in Item 3 of the Declarations as applicable to Coverage A, the per occurrence limit is the maximum limit of the Company's liability for all Insureds arising from any one occurrence;
C. The limit of liability stated in Item 3 of the Declarations as applicable to Coverage B, per claim, per Insured, is the maximum the Company will reimburse for attorney fees to any one Insured incurred in any one claim;
D. The limit of liability as stated in Item 3 of the Declarations as applicable to Coverage B, Annual Aggregate, per Insured all claims under B.A.1. and/or B.A.5., is the maximum amount the Company will reimburse any one Insured in any one policy year on account of attorney fees reimbursable under either Coverage B.A.1., B.A.5., and/or combined;
E. Subject to C and D above, the limit of liability stated in Item 3 of the Declarations as applicable to Coverage B, Annual Aggregate, all claims, is the maximum amount the Company will reimburse on account of attorney fees for all fees in any one policy year; and
F. The limit of liability stated in Item 3 of the Declarations as applicable to Coverage C is the maximum the Company will pay for any one bail bond for any one Insured.
CONDITIONS
A. Insured's Duties in the Event of Loss, Claim or Suit
1. In the event of an occurrence, written notice containing particulars sufficient to identify the Insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the Insured to the Company or any of its authorized agents as soon as practicable.
2. If claim is made or suit is brought against the Insured, the Insured shall immediately forward to the Company every demand, notice, summons or other process received by the Insured or the Insured's representative.
3. The Insured shall cooperate with the Company and, at the Company's request, consent to being examined and questioned by a representative of the Company, under oath if necessary, attend hearings, depositions and trials, and shall assist in effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits, as well as in the giving of a written statement or statements to the Company representatives and defense. In the event of a claim occurring likely to involve the Company hereunder, the Insured shall not make any payment, assume any liability or incur any expense without the consent of the Company first being obtained. The Company shall have full discretion in the handling of any claim, and the Insured shall give full information and assistance as the Company shall reasonably require.
B. Action Against Company No action shall lie against the Company, unless, as a condition precedent thereto, the Insured shall have fully complied with all terms of the policy, or until the amount of the Insured's obligation to pay shall have been finally determined either by judgment against the Insured after actual trial or by written agreement of the Insured, the claimant, and the company. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join the Company as codefendant in any action against the Insured to determine the Insured's liability. Bankruptcy or insolvency of the Insured or the Insured's estate shall not relieve the Company of any of its obligations hereunder.
C. Other Insurance If other insurance is available to the Insured covering a claim also covered by this policy, then this policy shall apply in excess of, and shall not contribute with, such other insurance.
D. Subrogation In the event of any payment under this policy, the Company shall be subrogated to all the Insured's right of recovery therefore against any person or organization, and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights.
E. Changes Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or stop the Company from asserting any right under the terms of this policy, nor shall the terms of this policy be waived or changed, except by endorsement issued to form a part of this policy.
F. Cancellation or Nonrenewal This policy may be cancelled by the policyholder by surrendering the policy to the Company or any of its authorized agents, or by mailing to the Company written notice stating when thereafter the cancellation shall be effective. This policy may be cancelled by the Company by mailing to the policyholder at the address shown in the policy, written notice stating when, not less then thirty (30) days for nonpayment of premium, or ninety (90) days for any other valid reason, such cancellation shall be effective. The mailing of nitice shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the policyholder or by the Company shall be equivalent to mailing. If this policy shall be cancelled by the policyholder, the Company shall retain the customary short rate proportion of the premium hereon. Payment or tender of any unearned premium by the Company shall not be a condition precedent to the effectiveness of cancellation, but such payment shall be made as soon as practicable. If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended to be equal to the minimum period or limitation of such law. In the event of cancellation by either the Company or the policyholder, and with the consent of the Company, the coverage for individuals for whom premium has been paid will continue until the end of the membership year of each. If the Company elects not to renew this policy at the end of a policy term, a written notice or nonrenewal stating the reason for such nonrenewal will be mailed or delivered to the policyholder at least ninety (90) days before the expiration date of the policy. The notice will be mailed to the last known address of the policyholder. If notice is mailed, proof of mailing is sufficient proof of notice.
G. Audit The premium shown in the Declarations is provisional and is based on the number of insured members at inception. The policyholder agrees to maintain a record of insured member and the policy will be subject to audit in a manner determined by the General Agent with the agreement of the Company.
H. Severability Clause It is agreed that the application and the Declarations are the basis of this policy and are to be considered as incorporated in and constituting part of the policy. As respects the particulars and statements contained in the application, conditions and the exclusions set forth herein, this policy shall be construed as a separate agreement with each Insured. Nothing in this paragraph shall be construed to increase the Company's maximum liability as set forth in Item 3 of the Declarations.
PUNITIVE OR EXEMPLARY DAMAGES
If suite is brought against an Insured for a claim falling within the coverage provided under the policy, seeking both compensatory and punitive or exemplary damages, then the Company will afford a defense to such action, but its obligation to pay any costs, interest, or damages attributable to punitive or exemplary damages shall be limited as provided by this endorsement of $5,000 per claim.
ALL COVERAGE PROVIDED UNDER THE TERMS OF THE POLICY IN THE EVENT OF A LOSS OR OCCURRENCE IS SUBJECT TO THE EXCLUSIONS AND CONDITIONS CONTAINED IN THE MASTER POLICY ON FILE WITH THE TEXAS ASSOCIATION OF COLLEGE TEACHERS, INCLUDING ALL AMENDMENTS, ENDORSEMENTS, AND ADDITIONS. ADDITIONAL INFORMATION CONCERNING COVERAGE OR ASSISTANCE IN FILING CLAIMS MAY BE OBTAINED FROM THE TACT STATE OFFICE AT 5750 Balcones Drive, Suite 201, Austin, Texas 78731; (512)873-7404.
