Professional Liability and
Executive Risk Liability Insurance provides Directors, Officers, Executives and others insurance coverage and defense coverage
in case their decisions, or lack thereof, somehow results in "wrongful acts" against organizations or people.
Professional Liability is usually excluded under a General Liability policy, but is insured under a separate
policy that helps provide coverage for a Business in many key areas of liability exposures, including the following:
1) Directors and Officers Liability:
Most commonly referred to as "D&O Insurance", Directors and Officers liability provides coverage for Directors,
Officers, Executives, Trustees and other similar Board members who are charged to make decisions for or provide advice and
direction for a company or entity. If they are accused of a "wrongful act" (which could be a myriad
of accusations), then the D&O policy will respond, and, if it is a covered loss, the policy will defend and either reimburse
the Directors and Officers or pay on behalf of the Entity for any claim they are found to be negligent.
Whether you are a paid Director of a corporation, a volunteer
Director of a Non Profit, a Trustee of a Church, a Trustee of a Condominium Association, or a Business Owner, you face exposure
to liability claims related to "Directors and Officers" activities. The premiums can be as low as a few hundred
dollars and increase from there, depending on the overall exposures.
2) Employment Practices Liability
Insurance (EPLI): This liability coverage provides coverage for a Business Owners decisions related to
their "Employment Practices". Wrongful Termination, Failure to Promote, Harassment and Discrimination are
a few examples of EPLI claims that any business could face. In today's litigious times, a business may face more of
a risk with their Employment Practices than their General Liability.
Furthermore, there is also exposures from "Third Parties" - customers, clients or others, who accuse the employees
of a business of similar "wrongful acts". As part of a businesses overall assessment of liability exposures,
the EPLI policy should be strongly considered to protect business assets from these types of claims.
3) Crime Insurance:
Businesses, Churches, Condominium Associations and Non Profit Organizations are all exposed to various criminal activities
from within their organizations and from without. Employees can steal money or other property that can cause a
business to go bankrupt. Computer Hackers can commit fraud and steal monies from bank accounts. Numerous types
of crimes can be insured for, including:
a) Employee Dishonesty
- Employees or Trustees stealing money and property from their employers or organizations.
b) Money & Securities - Robbers and Burglars can steal money from your premises or from your employees
while they are making deposits.
c) Computer Fraud - Hackers can
gain access to your bank accounts and redirect monies to their own fraudulent accounts.
d) Forgery and Alteration - Criminals can forge stolen checks or create fake checks from your bank account
information.
e) Credit Card Fraud - Criminals can steal credit card
information.
These types of losses, and many others can create financial exposures that can bankrupt a business or organization.
Crime Insurance is a vital coverage to reimburse those types of losses.
4) Fiduciary Liability:
As a Fiduciary of a Retirement Plan, you are "personally" responsible for claims made against you for your negligence
related to losses of those funds. A Fiduciary Liability policy will provide coverage for you if you are accused
of improperly administering retirement funds.
5) Other types of Professional Liability
Policies: Errors & Omissions Policies, Pastoral Professional Liability, Medical Malpractice Liability,
Engineers Professional, Lawyers Professional and other Miscellaneous Professional Liability policies are available to
protect against claims made against you or your organization. These types of exposures need their own insurance policy,
tailored specifically to meet that particular need in order to properly protect your business and organizations assets.
