FAQs: Liability Insurance For Pros & Businesses

Liability Insurance FAQS

GENERAL

ELIGIBILITY

Who is eligible to purchase coverage?

Currently, the DAN liability coverage is only available to U.S. residents who hold credentials from an approved training agency. DAN has future plans to extend coverage to other countries.

Can I purchase coverage as a freediving or swimming instructor?

Yes, our policies provide options for those who do not teach scuba but are qualified to teach freediving, RSSA (Recreational Surfaced-Supplied Air) diving, swimming, skin diving and snorkeling.

COVERAGE

Do DAN Professional Liability plans meet training agency requirements for coverage?

Yes. The DAN liability coverage meets the insurance requirements of all dive training agencies.

Where am I covered when I teach or supervise divers?

The Professional Liability policy offers worldwide coverage to U.S. residents, no matter where in the world you teach or supervise divers.

Am I covered to teach rebreathers or technical diving?

Yes, you may customize your plan to include the Rebreather and/or Technical Dive Training endorsements at no additional charge. Applicants must carry the appropriate certifications/ratings for the equipment used for coverage to be valid.

ADDITIONS

Can I add an endorsement after I purchase my policy?

Yes, you can add any endorsement later and pay the prorated amount for the remainder of your policy term.

Is there any way to cover excess limits above the standard $1 million per claim / $2 million aggregate?

You may customize your plan to include the Excess Liability Eendorsement, which will increase your policy limits from $1 million per claim/$2 million aggregate to $2 million per claim/$4 million aggregate. There is an additional premium for the higher limits.

Who can be an additional insured?

Additional insureds are third parties who can be added to the policy at no additional cost. The listed additional insureds are then protected under your policy and have coverage against claims that result from professional services you (the named insured) provide as a dive leader, instructor or business owner.

Instructors or divemasters may not be added as additional insureds; they must have their own professional liability coverage or be listed as insured staff members under a group policy.

Are there fees to add additional insured? What about fees for policy upgrades?

There is no additional cost to add additional insureds. There are no additional fees for upgrades, but some changes require the payment of additional premium.

Can I purchase equipment liability for my personal gear I loan to students?

Yes, you can purchase the Equipment Liability endorsement, which will provide you with coverage for claims alleging defective or malfunctioning equipment that you own which is being used by students or other customers.

RENEWALS

When do I need to renew my Professional Liability policy?

If you want continuous coverage, you need to renew no later than the day before your existing policy expires. Renewal notices will be sent to remind you; however, you can renew as late as the day before your policy is due to expire to keep your coverage without lapsing. There is no grace period.

I won’t be teaching again for a while, why should I renew my coverage?

Since the insurance you are purchasing is a claims-made policy, it requires you to have coverage at the time the claim is made. If a claim is made and your coverage has lapsed, you will not be covered.

Does DAN RRG offer tail coverage?

If you are no longer actively teaching or supervising divers, the risk of a claim against you drops considerably. However, claims can arise from teaching or supervision you did in prior years and you need insurance coverage at the time the claim is made.

For these situations, DAN RRG offers “tail coverage” to protect you against claims that are made after you have retired. After a few years (the length of time depends on the state), the ability of an injured diver to bring a claim expires and tail coverage is no longer needed.

COSTS

Do I have to pay for Professional Liability Insurance up-front?

Yes, the policy needs to be paid for the coverage to be in effect. All premiums are fully earned, and there are no refunds.

I am a DAN member, do I get a discount on my Personal Liability Insurance policy?

Yes, as a DAN member, you are eligible to receive a discount on each of the policies sold by DAN Risk Retention Group. If you need to renew your DAN membership or sign up, you can do so at DAN.org/JOIN.

SUPPORT

How do I access my proof of coverage?

Once your policy has been issued, you can log in to your account at DAN.org/LIABILITY to print your declaration page and insurance card at any time.

Whom do I contact if I have questions?

For questions, contact a member of our liability insurance team by phone at +1 (919) 490-2934 or by email at .

PROFESSIONAL LIABILITY & GENERAL LIABILITY

What risk mitigation programs, products or services do you offer?

The DAN Risk Retention Group offers Professional Liability (both individual and group) and Commercial General Liability Insurance. DAN also offers Dive Accident Insurance, Trip and Travel Insurance and subsidized Student Medical Expense Coverage for entry-level open water students.

DAN offers a variety of risk mitigation programs, including the following:

1. Brochures and other materials on diving safety, available in print and digital
2. Hazard Identification and Risk Assessment (HIRA) — 3 levels (2 are self-assessments)
3. Prepared Diver Course (e-learning program which reminds divers of the causes of diving accidents)
4. Student Medical Expense coverage (to offset the cost of an injury to your student)
5. DIDS Boards (to count divers on the boat)
6. Oxygen and first aid kits, and training, to respond to injuries

Is my policy a claims-made or occurrence-based policy?

The Group Professional Liability policy (both individual and group) is a claims-made policy, meaning that coverage is triggered when a claim is made against the insured verbally or in writing, or reported in writing to the underwriters, during the policy period. The claim must be made during the policy period or any extended reporting period, and must occur after the designated retroactive date. (cont.) The Commercial General Liability policy is an occurrence-based policy, meaning that coverage is triggered on the date the bodily injury or property damage occurs. The claim may be made after the expiration of the policy term, provided the event occurred during the policy term.

Who is eligible to purchase coverage?

Currently, DAN liability coverage is available to U.S. residents who hold credentials from an approved training agency.

How quickly can I get a quote?

You can get an instant quote on DAN.org/LIABILITY.

Do DAN Professional Liability plans meet training agency requirements for coverage?

Yes. DAN liability coverage meets all dive training agency standards.

Where am I covered when I teach or supervise divers?

The Professional Liability policy offers worldwide coverage, no matter where in the world you teach or act in a dive-professional capacity

Can I purchase coverage as a freediving or a swimming instructor?

Yes. Our group policies provide options for those who do not teach scuba but are qualified to teach freediving, RSSA (Recreational Surfaced-Supplied Air) diving, swimming, skin diving and snorkeling.

Can I add endorsements, teaching staff, additional insureds after I purchase my policy?

Yes, changes can be made at any time. You can add or purchase endorsements or riders, add/remove staff or add/remove additional named insureds. Contact a liability representative for assistance.

Who can be an “additional insured”?

Additional insureds are third parties who can be added to the policy at no additional cost. The listed additional insureds are then protected under your policy and have coverage against claims that result from professional services you (the named insured) provide as a dive leader, instructor or business owner.

Are there fees to add additional insureds or staff? Are there any fees for policy upgrades?

There is no additional cost to add additional insureds or staff. For an upgrade, there may be an additional premium depending on what’s added to the policy.

How do I apply for coverage?

You must complete the application found on the DAN Risk Retention Group website.

How do I get proof of coverage?

Upon payment of your premium, your liability documents will be sent to the email address on your application. You will be provided with a Declarations Page which describes the coverage you have purchased. If you have listed additional insureds, they will be provided with a separate certificate of insurance.

Who do I contact if I have questions?

For questions, contact a member of our liability insurance team at +1 (919) 490-2934 or email at .

What insurance products do you offer for dive professionals?

The DAN Risk Retention Group offers Professional Liability (both individual and group) and Commercial General Liability Insurance. DAN also offers Dive Accident Insurance and Trip/Travel Insurance.

Can I purchase Group Professional Liability by itself?

Yes, both Group Professional and General Liability can be purchased separately.

I help plan trips for my customers. Can I be held responsible?

Yes, which is why we offer Tour and Travel Agent Liability as an endorsement option for the Commercial General Liability policy.

I own a quarry and use it for teaching. It this property automatically covered?

No. Since you own the quarry (also applies to a lake), coverage requires the purchase of a separate rider and payment of an additional premium. If you do not own the lake or quarry, but just use it for training, you do not need to add this rider.

I own additional shop locations. Are they covered?

Yes, additional locations are covered at no additional cost provided they are listed with their physical addresses on the application.

How long does it take to process an application?

Most applications are processed the day they are received. However, underwriting may require 24 to 48 hours.

Is premium financing available?

Yes, DAN RRG can refer you to a third-party finance company to provide premium financing. This requires a separate application. If approved, there is a 25% deposit and the balance is paid in 9 installments. The interest rate is set by the finance company and does not benefit DAN.

Does the General Liability program cover equipment service and repair?

Yes, claims made for negligent equipment service and repair, including rebreathers, is covered. I only need coverage for a couple of months.

Do you offer short-term policies?

No, all DAN RRG policies are for a one-year (12-month) terms. We do not offer short-term policies.

Am I covered to teach rebreathers or tech diving?

Yes, you may customize your policy by adding the endorsement to include the Rebreather and/or Technical Dive Training endorsement at no additional charge. Applicants must carry the appropriate certifications/ratings for coverage to be valid.

Does DAN’s Professional Liability Policy include prior acts coverage?

Yes, this is a claims-made policy and covers all claims made during the policy term, provided the incident/ loss occurred subsequent to the earliest date from which you have had continuous professional liability insurance coverage. That coverage could have been with another insurance carrier, but it must have been continuous.

Can you insure the contents of my shop?

No, you need to purchase property insurance for this risk. Currently, DAN is not able to insure the building or contents of your shop for loss or theft. We are working on options for property insurance, so check back for future announcements.

How do I file a claim?

Complete an incident report to gather the relevant information. Once this is done, call 1-800-446-2671 (+1-919-684-2948) and speak with one of the customer service representative for the DAN Pro Program, or email the report to liabilityclaims@dan. org. If the incident involves a fatality or serious bodily injury, please contact DAN ASAP so that we can take steps to protect your interests.

What is the Employee Benefits Liability endorsement?

This extends coverage to include damages when the act, error or omission is negligently committed in the administration of your employee benefit program.

What is Tour and Travel Agent Liability?

This extends coverage to services provided in the role of tour or travel agent, or otherwise arranging activities for customers with airlines, hotels, resorts, dive operators, concessionaires, vendors or subcontractors.

Can you cover my boat?

No, you need a marine policy for this risk. Currently, DAN is not able to insure boats. We are working on options for marine insurance, so check back for future announcements.

How many staff members can be covered under my group policy?

Currently, there is no limit to the number of staff members that can be covered under your group policy. But remember, all staff members share the single policy limit.

Are there discounts available?

Yes, a discount is available for DAN members. To receive the DAN member discount rate, all dive professionals under a Group Professional Liability policy must have an active individual/family DAN membership.

I have more than one shop location. Do additional fees apply?

No, there is no additional charge for additional locations.

My shop revenues are higher than the listed amounts. Can I still purchase coverage?

Yes, please call 1-800-446-2671 (+1-919-684-2948) and speak with one of the customer service representatives for the DAN Pro Program, or email .

How does coverage work under a Group Professional Liability policy?

Coverage is the same as under an individual policy, but note the following:

1. All staff listed under a group policy share a single limit of liability ($1 million / $2 million aggregate) and that limit is reduced each time a claim is made.
2. Coverage only applies to professional services provided by your staff to the store’s customers. If a dive professional teaches or leads a dive trip with someone who is not a customer of the dive shop, the dive professional has no coverage.

What limits are available?

For General Liability and Group Professional Liability you may purchase limits of $1 million per claim and $2 million aggregate. You may increase the limits on the Group Professional Liability to $2 million per claim and $4 million aggregate by purchasing the Excess Liability endorsement.

Am I exposed to liability whether or not I choose to render aid?

Each case will be fact dependent, but understand that a plaintiff can file suit against you regardless, and place the burden of proof upon you to defend.

If I teach for more than one dive training agency, can I be covered under one Group Liability policy?

Yes, the Group Professional Liability policy is designed to cover a professional for services provided under the guidelines of any of the approved training agencies. However, with a group policy the professional services must be provided to customers of the dive business. Professional services you provide outside the scope of your responsibilities as an employee or independent contractor of the dive business are not covered under a group policy.

Is your defense cost on the Professional Liability included in the policy limits or is it outside the limits?

Defense costs are included in the aggregate policy limit of both the GL and PL policies.