What’s Covered Under Commercial General Liability Policy?

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

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.