There are many rewards that come with having your own business, including a sense of pride in creating something from scratch or expanding an existing operation into a successful entity. With any reward comes risk and it’s our job at Preferred Insurance to help you balance the two so that you can continue on a successful path. We do this by offering a number of key insurance products in our portfolio of liability coverages. In addition to General Liability insurance, we offer Management Liability coverages designed to address and respond to different aspects of today’s litigious and highly regulated landscape.

Professional Liability Insurance (Errors & Omissions)

We all make mistakes, which is why businesses offering professional services should be carrying Professional Liability insurance, also called Errors and Omissions (E&O) coverage. It’s part of factoring in the “we’re only human” margin-of-error. E&O insurance helps protect your company and employees in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results and caused a financial loss. For doctors, dentists, chiropractors, etc., this is often called Medical Malpractice insurance. For lawyers, accountants, architects or engineers, it may be called Professional Liability. An E&O policy will provide defense coverage for legal fees as well as settlements.

Professional Liability insurance is required by law in some areas for certain kinds of professional practices (especially medical and legal), and is also sometimes required under contract by other businesses that are the beneficiaries of the advice or service. Common professions that may need Professional Liability insurance include:

  • Accounting
  • Financial Services
  • Many Non-Profits
  • Insurance Professionals
  • Consulting Firms
  • IT (Information Technology)
  • Architects & Engineering
  • Contractors
  • Legal

For attorneys, for example, the most common E&O lawsuits involve conflicts of interest and the largest number of claims originates from the real estate practice area. For architects, the most common source of claims comes from failure to comply with a client’s expectations or a breach of contract.

What is important to note is that E&O policies differ depending on the profession they are designed to protect. It’s important to work with insurance professionals such as Preferred that have the experience and expertise to secure the right policy to address your exposures and who have an understanding of the litigation environment in Texas.

Directors & Officers (D&O) Liability Insurance

The conduct of directors and officers is coming under increased regulatory and legal scrutiny these days. This is not only relevant for large corporations with stakeholders but also for family owned businesses and private middle-market firms that are vulnerable to lawsuits alleging wrongdoings, such as financial mismanagement, misappropriation of funds, and negligence. Directors & Officers (D&O) Liability insurance is designed to protect against risks associated with management actions and the decisions of a company’s directors and officers. The policy can be set up to protect the firm itself and its directors and officers from liability due to breaches of duty resulting from negligence, error, or omission. Coverage also includes defense costs and court fees for covered claims.

Employment Practices Liability Insurance (EPLI)

Companies of all sizes have been increasingly the targets of federal and state agencies that oversee employment-related practices. From allegations of discrimination, sexual harassment, and wrongful termination in addition to wage-and-hour disputes, without the appropriate insurance program in place, a firm can be looking at significant legal costs to defend against these and other claims. This is in addition to any settlement or judgment that may be rendered. EPLI coverage steps in and will pay for legal costs, settlements and damages associated with employment practices allegations. Coverage protects your company, your leadership and even employees. The policy’s broad guidelines usually encompass most claims of discrimination, harassment, wrongful termination and workplace misconduct that lead to emotional or physical distress.

Our professional staff will review your specific business to determine the extent of your exposures and the insurance policies needed to protect your operation and leadership.

Make Preferred Your Insurance Choice

The hallmarks of our success are our integrity, ethics, reliability and the value we place on our clients. We invite to learn more about us, and make Preferred your agency of choice. Give us a call at 888-943-5144 or email us at