Professional liability insurance protects a business, its directors, and employees against lawsuits and claims related to errors or wrongful acts that may be made while providing services or advice. Coverage is generally provided when perceived or actual mistakes have been made or flawed services end up costing a client money or injury. These kind of insurance policies include coverage for legal defense costs and court settlements when a business or director faces a lawsuit by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company. Illegal acts or illegal profits are generally not covered. Here are some examples of professional liability insurance coverage:
Directors & Officers Insurance (D&O) protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued;
Errors & Omissions Insurance (E&O) protects a business in the event of a mistake or wrongful act that may be made while providing services or advice;
Employment Practices Liability Insurance (EPLI) includes coverage for defense costs and damages related to various employment-related claims including allegations of wrongful termination, discrimination, harassment or retaliation;
Medical Malpractice Insurance protects physicians and other licensed health care professionals from liability associated with wrongful practices resulting in bodily injury or medical expenses;
Cyber Liability Insurance covers costs associated with data breaches and cyber attacks on a business;
Kidnap & Ransom Insurance protects employees and their families from a range of perils at the office or when travelling abroad.
