Professional Liability coverage is not provided by a Commercial General Liability policy (your normal business liability insurance policy).
Directors & Officers Liability
Directors and Officers Liability insurance (D & O) is becoming more and more important in today's society. It is pretty hard to ask people to serve on your board, give their time, energy and talents and then have them take the risk of losing their personal savings and assets if they are sued. If your organization has not purchased enough liability coverage, or has neglected to buy D & O coverage at all, you are putting your Directors and Officers in a vulnerable position.
A D & O policy will not only pay for the cost of a judgment but will also pay for the legal costs to defend you in the case of a lawsuit. The legal costs to defend yourself or to prove that you are innocent can be overwhelming.
One of the most common claims for a D & O policy is Employment Practices Liability. Claims for such things as wrongful dismissal, discrimination, harassment or abuse in the workplace are all covered under a D & O policy.
An option for individuals who are on non-profit Boards is to look at a Personal Umbrella Liability.
Errors & Omissions Liability
This coverage provides protection to professionals and organizations against claims resulting from errors, omissions or negligent acts made in the process of providing their professional services.
Coverage includes legal defense costs - no matter how baseless the allegations. Errors and Omissions insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.
Even if you're not at fault, litigation is time-consuming, costly and potentially disastrous to a firm's reputation.
Companies and consultants who have General Liability without Professional Liability (E & O) coverage are taking a serious risk. It is like a Doctor practicing medicine without Malpractice insurance!
- Mistakes Happen. Every company can make a mistake at some point. For example, you recommend to a client that they run a test of their system, after you did some extensive work on it. The client takes your advice, the system crashes, and they are unable to conduct business for a whole week. The client becomes enraged, calls his attorney, and looks to you for reimbursement.
- You Can't Be Everywhere. Sometimes you can't personally handle every job. Errors and Omissions coverage insures not only your mistakes, but also the mistakes of the employees and Independent Contractors you hire.
Errors and Omissions insurance might save you from extreme embarrassment, a lost client, or worst of all, a bad reputation!
For more information or to get a quote on Professional Liability Insurance, please contact our office