Professional Liability / EPLI / Directors & Officers / Fiduciary Liability
So your landlord or customer are requiring you to get general liability insurance? But is that really doing much to help you in the event of a claim or lawsuit? Sure – everyone needs General Liability insurance, but there are many businesses out there that have a much higher probability of having a claim due to a professional error or omission.
If you provide IT Consulting services and go to an office every week and meet with clients, your customer more than likely will require you to carry General Liability insurance to get on to their campus. But what are the odds that you are going to leave your laptop on the ground, resulting in a person tripping over it and suing you? It could happen, but not a likely occurrence. The insurance is really only required because the legal or risk management department for that company require it.
Professional Liability is there to cover the professional error or omission you or your employee make. For example, while you are doing consulting work for your customer, the customer alleges that you forgot to advise them of something causing a large financial loss for them. The policy for that – Professional Liability (AKA – Errors & Omissions Insurance).
The most common industries where this coverage comes into play:
• Pest Control
• Software Application Development
This coverage is sometimes required by your customer but usually is just a smart way to help mitigate risk.
EPLI (Employment Practices Liability)
Employment Practices Liability Insurance has become a valuable component of company’s insurance portfolios. Small or large, industrial or retail, Employment Practices Liability Insurance (EPLI) has been vital in today’s workplace.
The majority of EPLI policies include protection from Lawsuits and Claims for:
• Sexual Harassment
• Wrongful Termination
• Breach of Employment contract
• Negligent Evaluation
• Failure to Hire or Promote
• Wrongful Discipline
• Deprivation of Career Opportunity
• Wrongful Infliction of Emotional Distress
• 3rd Party Liability (ADA Claims)
Directors & Officers Liability
Directors and Officers Liability Insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Think of Directors and Officers Insurance as a management Errors and Omissions policy
The majority of D & O policies include protection from Lawsuits and Claims for:
• Claims Against The Marital Estate
• Misappropriation of Trade Secrets
• Violation of a Non-Compete Agreement
• Unfair Business Practices
• A Request for Exemplary Damages (Punitive Damages)
• A Violation of the Lanham / Trademark Act (Trademark Infringement)
• Defense Costs for a FDA Investigation
• Alleged Price Fixing
• Mismanagement of Company Assets
Fiduciary Liability Insurance pays, on behalf of the insured, legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974. “Insured” is variously defined as a trust or employee benefit plan, any trustee, officer or employee of the trust or employee benefit plan, employer who is sole sponsor of a plan and any other individual or organization designated as a fiduciary. Group life and medical expense plans, as well as pension and retirement plans, are within the scope of the law.