Hiscox Professional Liability Portfolio - old and new policy form comparisonTransitioning to a new form can be tricky and time intensive unless you know what’s changed. We want to SAVE YOU TIME and aim to be transparent about what is, and just as importantly, what is not covered under the old and the new forms.

The benefit to you - now you can spend time determining what coverage best suits your client. If this comparison doesn’t answer all of your questions, please contact your local Hiscox underwriter who can further assist you.

Applicable to all Allied Healthcare, Architects and Engineers and Miscellaneous Professional Liability forms

Provision Old policy1 New policy2

Trigger of coverage Wrongful acts Alleged negligent act, error, or omission in ‘your professional services’

Defense of licensing proceedings

No coverage Included as coverage enhancement, outside of limits

Subpoena assistance No coverage Included as coverage enhancement, outside of limits

Punitive damages Excluded except where insurable by law, up to $250K sublimit

Specifically included in definition of ‘damages’, where insurable by most favorable applicable jurisdiction, up to full limits

Fines, penalties, taxes or sanctions exclusion

All fines, penalties, taxes or sanctions are excluded from definition of ‘damages’

Only fines, penalties, taxes or sanctions against insureds are excluded

Personal injury Covered wrongful act Expanded definition includes ‘personal and advertising injury’

Payment of claimant’s attorney fees

Silent Explicitly covered as ‘damages’

Supplemental payments Up to $250 per day, up to $5,000 per claim, erodes limits

Up to $250 per day, up to $10,000 per claim, outside of limits

Prior knowledge Insured had to establish no prior knowledge of wrongful act to trigger Insuring Agreement

Prior knowledge exclusion

Provision Old policy1 New policy2

Definition of claim Any notice received by the insured for damages or non-monetary relief

Written assertion of liability or written demand for financial or non-monetary relief

Cost of complying with injunctive relief

Silent Specifically excluded

Liquidated damages Silent Specifically excluded

Criminal proceedings Cost to defend criminal proceedings excluded from definition of ‘claim expenses’

Specific exclusion for criminal proceedings

Reporting of claims As soon as practicable, but immediate written notice for any summons, arbitration demand or other notice of legal proceeding

Written notice as soon as possible for all claims or other covered matters

Arbitration demand against insured

If insured receives arbitration demand which it can accept or reject, can accept only with our written consent

Silent

Data privacy exclusion Silent Explicit exclusion (except for covered HIPAA claims for AHC forms)

Unsolicited telemarketing/ Telephone Consumer Protection Act exclusion

Exclusion inadvertently left off combined PL/GL form Explicitly excluded in all forms

Action against us No action against us by insured unless insured has fully complied with entire policy and insured’s obligation for claim has been finally determined by judgment or settlement

Silent

Change in control Silent If named insured merges into or is acquired by another entity, notice is required to us within 30 days; coverage is limited to claims arising from professional services performed prior to change in control, unless we and insured agree otherwise

Intentional acts/fraud exclusion

Final adjudication and severability for indivdual insureds

Final adjudication and full severability for individual insureds and partial severability for the entity

Provision Old policy1 New policy2

Intellectual property exclusion

Does not exclude publicity rights, cyber squatting, and moral rights violations

Expressly excludes publicity rights, cyber squatting, and moral rights violations

Misappropriation/commingling of funds

Silent Expressly excluded

Definition of pollution Any solid, liquid, gaseous, or thermal irritant, contaminant or toxin, including but not limited to smoke, vapor, soot, fumes, acids, alkalis, chemicals, metals, silica, lead, lead compounds or materials containing lead, radon, asbestos, electromagnetic radiation or waste of any like substances. In addition to pollutants to be disposed of, waste also includes materials to be recycled, reconditioned, or reclaimed

Means any solid, liquid, gaseous, biological, radiological, or thermal irritant or contaminant, including smoke, vapor, asbestos, silica, dust, nanoparticles, fibers, soot, fumes, acids, alkalis, chemicals, nuclear materials, germs and waste. Waste includes, but is not limited to, materials to be recycled, reconditioned, or reclaimed (new items noted in italics)

ERISA exclusion ‘For’ exclusion ‘Based upon or arising out of’ exclusion, to be amended when applicable

Claim expense Includes all other reasonable and necessary fees, costs and expenses incurred by the insured with our written approval

Does not include all other reasonable and necessary fees, costs and expenses incurred by the insured with our written approval

Warranties/guarantees exclusion

No carveback for liability which would exist in the absence of the warranty or guarantee

Express carveback for liability which would exist in the absence of the warranty or guarantee

Seasonal and temporary employees as insureds

Not expressly included Included in definiton of employee

1Old policy - Allied Healthcare: AHC P001 CW (04/09); Architects and Engineers: ANE P001 CW (04/09); Miscellaneous Professional Liability: MPL P001 CW (06/09)2New policy - Allied Healthcare: WCLAHC P0001 CW (12/12); Architects and Engineers: WCLANE P0001 CW (12/12); Miscellaneous Professional Liability: WCLMPL P0001 CW (02/13)

Hiscox Professional Liability Portfolio Applicable to Allied Healthcare form

Provision Old policy3 New policy4

HIPAA violations Available only as endorsement Sublimit included in base form as coverage enhancement

Sexual misconduct Excluded Sublimit included in base form as coverage enhancement

Independent contractors Excluded Specifically included in definition of ‘insured’

Bodily injury to employee exclusion

Excludes BI and any resulting emotional distress to employee and certain other individual insureds

Excludes BI and emotional distress to employee and other individual insureds except students

Reporting of claims Claims made Claims made and reported, but with 60-day auto ERP

Managed Care Services Excluded Silent

Insured v. insured Exclusion for claim by insured or affiliate against another insured or affiliate

Express carveback for claims by insured or affiliate brought in their capacity as a client of another insured or affiliate

3Old policy - Allied Healthcare: AHC P001 CW (04/09)4New policy - Allied Healthcare: WCLAHC P0001 CW (02/13)

Hiscox Professional Liability Portfolio Applicable to Architects and Engineers form

Provision Old policy5 New policy6

Pre-claim assistance None Up to $50K in pre-claim assistance, outside of limits

Independent contractors Not listed in definition of insured Specifically included in definition of insured

Pollution Excluded with carveback for pollution directly arising from performance of professional services

Explicitly covered for pollution directly arising from performance of professional services, up to full limits

Property damage Excluded with carveback for PD directly arising from performance of professional services

Explicitly covered for PD directly arising from performance of professional services, up to full limits

Bodily injury Excluded with carveback for BI directly arising from performance of professional services

Explicitly covered for BI directly arising from performance of professional services, up to full limits

Mold Silent, but excluded by endorsement Explicitly covered with sublimit or full limits

FHA/OSHA/ADA regulatory coverage

No coverage Up to $25K regulatory defense and response costs, outside of limits

Asbestos Excluded except claims arising from insured specifying asbestos-containing product or material

No asbestos exclusion for design professionals, construction managers, and developers; no change for contractors

Third-party discrimination Silent Explicitly covered up to full limits

Deductible credit Available as endorsement Included in base form

Owned entity Insured v. insured exclusion applies to any entity in which insured has over 15% ownership

Insured v. insured exclusion applies to any entity in which insured has over 25% ownership

Bankruptcy exclusion Exclusion for any claim arising from bankruptcy or insolvency of insured with carveback for claim based on performance of professional services

No exclusion except on developers form

Anti-trust/deceptive trade practices exclusion

Silent Expressly excluded

Leased and volunteer employees as insureds

Not expressly included Included in definiton of employee

5Old policy - Architects and Engineers: ANE P001 CW (04/09)6New policy - Architects and Engineers: WCLANE P0001 CW (02/13)

Hiscox Professional Liability Portfolio Applicable to Miscellaneous Professional Liability

Provision Old policy7 New policy8

Acquired entity Automatically covered for 90 days Subsidiaries acquired during policy period covered automatically, coverage for acquired entities with less than 50% insured ownership available by endorsement

Third-party discrimination Silent Automatically included for certain industries, excluded for others

Sexual misconduct Silent Explicitly excluded. Stand alone coverage option available

Excluded professional services (attorney, accountant, RIA, insurance agent/broker, security broker/dealer)

Excluded via endorsement on select accounts Exclusion built into policy

Medical malpractice exclusion

Excluded via endorsement on select accounts Exclusion built into policy

Anti-trust/deceptive trade practices exclusion

Silent Expressly excluded

Leased and volunteer employees as insureds

Not expressly included Included in definiton of employee

7Old policy - Miscellaneous Professional Liability: MPL P001 CW (06/09)8New policy - Miscellaneous Professional Liability: WCLMPL P0001 CW (02/13)

This comparison does not address every word or provision that has changed in the new policy forms. In the new forms we improved the structure and language, and in this comparison we attempted to address all substantive changes between the old and new forms. Please contact your underwriter for information on additional changes/limitations.

About Hiscox in the US: www.hiscoxusa.com/broker/usa_about_hiscox.htmwww.hiscoxusa.com/broker 11309 06/13