Exclusions

Generally speaking there are 3 types of exclusions to be aware of; exclusions for services provided, exclusions for costs eligible for coverage under a claim and excluded types of loss. A few examples of each are outlined below. For full details of the exclusions, please refer to your policy wordings.

1) Service Exclusions: The IDC Professional Liability Plan was designed to cover only those services that are usual and customary to Registered Interior Designers.  The key elements to note here are “usual” and “customary”.  While many kinds of services may be design related, if designers in general don’t provide the service on a regular basis in the course of their work as a designer, there is a chance that the service may not considered usual or customary.

Examples: 
* Design/Build: Refers to the hiring of trades and sub trades that are to be used in bringing the design to life (i.e. electricians, plumbers, contractors etc).  When a Project Manager hires a trade to perform work, they are in essence endorsing the professional competence and performance of that trade to their client.  Accordingly, the Project Manager becomes liable for the quality of the said trade’s performance.  If there is a problem, or claim, that results from the work of that trade, the client will seek retribution from or through the Project Manager since it was because of them that the at fault trade came to do the work. 

If you hire manufacturers to create objects such as furniture, shelving etc, be sure to let your broker know. The manufacturer is responsible for the quality of construction and therefore should always invoice the client directly for the finished goods. 

* International Exposure:  The rules and laws regarding appropriate conduct, and punishments for offenders of such rules or laws are vastly different around the world.  So while a professional may not be liable for something in Canada, they may be in another country.  Because premium is collected based on the rules and laws applicable to individuals in Canada, Errors and Omissions lawsuits must be brought forth in a Canadian court and be subject only to domestic standards of responsibility.

Coverage for Commercial General Liability is not provided for projects taking place outside of Canada.

* Related Industries: your policy will only respond to design services as described by IDC. If you are involved in any other related trade or service, please be advised that liability arising out of your participation on these services is not covered by this policy. Contact your servicing broker to arrange alternate coverage.

2) Excluded Costs: Claims for reimbursement, monies paid to fix design or product errors, lost wages or fees, fines or penalties or damages to yourself or your property (you can’t sue yourself) are not covered.

Examples:
* money paid to the client by the insured to compensate for damages (i.e. you tried to settle privately).

* costs incurred by the client in order to rectify errors (i.e. wrong fabric ordered and you assume cost of correcting).

3) Excluded Losses: These exclusions deal with the typically uninsurable things such as fraud, intentional acts or damage, criminal negligence or malicious intent.  They also deal with scenarios where it is not possible for the policy to respond in the way it was designed to.

Examples:
* loss that occurs as a result of a criminal/fraudulent act on the part of someone insured by this policy.

* claims resulting from the bankruptcy or insolvency of the insured.

* claims resulting in the infringement of any trademark, trade name etc.

* lawsuits brought against the insured for liable or slander

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