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Professional Liability

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Three components of professional liability insurance are Errors & Omissions (E&O), Directors & Officers (D&O), and Employment Practices Liability Insurance (EPLI). Many companies package these different types of coverage under one policy, but they can also be purchased as separate policies to provide more specific coverage. In a nutshell, these types of coverage provide protection from legal action against one’s professional performance. Often times, one may have not have committed any kind of malpractice, yet there may be perceived malpractice. Defending such allegations, whether baseless or not, can cost hundreds of thousands of dollars. With a professional liability policy in place, your defense costs are covered by the insurance company, up to the coverage amount you purchased. Also, since missteps can and do happen, the policy may cover settlements or judgments up to coverage limits, in addition to defense costs. Lastly, insurance companies can provide better legal representation than you may be able to access on your own, either due to a lack of local access or due to the high cost.

We have placed coverage for many firms who have not previously carried any kind of professional liability coverage. Whether or not you have current coverage, we can discuss your needs with you and advise you on which coverage best fits your needs.

Errors & Omissions (E&O)

Also known as malpractice insurance, E&O provides coverage to individuals and firms who provide a certain expertise and counseling to their clients. When a professional receives payment in exchange for services, they are held to a high standard by both the client and the legal system. While incidents are not common, when they do happen they are very costly. Having the right insurance coverage in place helps to allow continuity of the practice, while minimizing possible huge financial burdens and distractions by transferring the burden to the insurance company.

Here are some professions where it is crucial to carry E&O insurance:

Doctors (malpractice)
Dentists (malpractice)
Computer Consultants
Software Developers
Certified Public Accountants
CFP & Financial Consultants
Management Consultants
Architects & Engineers
Property Managers
Project Managers
Mortgage Brokers
Attorneys

Directors & Officers Insurance (D&O)

This type of insurance is taken out to protect legal action against directors & officers of a company. Any firm who has a board of directors, such as privately held companies, non-profit organizations, and homeowners associations, need this coverage. Anyone serving on a board without this coverage is putting their own personal assets at risk. Legal action against Directors & Officers can come from competitors, government agencies, creditors, employees, stockholders, and other third parties.

Directors & Officers liability claims examples

D&O insurance information from Travelers Insurance

Employment Practices Liability Insurance (EPLI)

EPLI insurance is becoming more and more necessary for employers, both large and small alike. EPLI provides protection against employee lawsuits such as discrimination, sexual harassment, failure to employ, and many others. This coverage generally does not pay for punitive damages, but instead will pay for the company’s legal costs associated with a covered lawsuit.

Please see our page on EPLI coverage

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