Why Professional Liability?
November 21, 2021
We live in time where lawsuits are common. Private firms are no longer immune from litigation by employees, competitors and even the government. Management or professional liability insurance is not just good business; it is as necessary as heat and lighting are for your office. Statutes, state and federal laws change regularly so it is vital that your company protect its assets with management or professional liability insurance.
Professional Liability Issues
- General Liability Insurance does not cover the risks associated with Professional/Errors & Omissions Liability. You need a separate insurance policy to cover this risk.
- Defense costs are going up at a rapid rate. Insurance can provide needed defense coverage, even if you are not determined to be liable.
- Company owners can be held personally liable for their actions as well as the actions of managers or executives.
Liability Coverage (each carrier will have their own distinct coverage terms)
- Coverage for claims brought by partners not involved in the firm’s management
- Mismanagement or negligence in the day-to-day business decisions
- Punitive damages coverage (where insurable by law)
- Coverage for subsidiaries
- Can include all employees
The best thing to do is call our office and allow us to provide you with a risk review with coverage options.