Changes to “defense within limits” provisions for professional liability insurance

LMC Insurance & Risk Management, a South Dakota Association of Healthcare Organizations (SDAHO) Enterprises insurance services provider, alerted SDAHO regarding Bulletin 18-01 issued by the South Dakota Division of Insurance on March 29. Bulletin 18-01 outlines several changes to the Division’s treatment of Defense Within Limits provisions for professional liability policies.

Of significance is the Division’s guidance regarding extended reporting period endorsements for claims-made policies. Bulletin 18-01 states that Directors & Officers Liability and Professional Liability (not including Medical Malpractice insurance) will only be approved by the Division in policies with a minimum of $1 million per occurrence. In addition, Defense Within Limits for Employment Practices Liability is permitted without the minimum $1 million per occurrence requirement; however, a $1 million option must be offered.

Questions regarding this bulletin may be directed to Pat Duff, LMC Insurance & Risk Management Senior Vice President, at 515-237-0193 or