Specialty Liability Coverage-Management, Professional, Pollution & Cyber
Management liability insurance is a relatively new type of insurance protection. It protects against allegations of financial injury. It combines directors and officers liability (D&O), employment practices liability insurance (EPLI), and fiduciary liability insurance.
Management liability insurance helps provide protection against:
Allegations of wrongful termination, discrimination, and sexual harassment, the most common types of complaints against companies. There is a lot in the press about wrongful termination suits and the large court awards or out-of-court settlements, and management liability insurance provides protection in this key area. In addition, insurance companies who issue this type of insurance protection often provide training to help prevent claims, along with sample communications and policies which can help in preventing suits and problems.
Charges of mishandling investment funds or failing to carry out investment instructions. It only takes one mistake to result in significant consequences. Even if it was an honest error, it can take years to put things straight, and there can be tremendous financial repercussions. This type of protection can offer an important safety net.
Shareholder suits alleging a lack of proper corporate governance. Allegations of poor corporate governance can have a significant impact on a business, especially when the term transparency is becoming more and more a part of the business lexicon. Properly set-up management liability insurance can make a huge difference if one of these allegations were to arise. Contact us today to find out if management liability insurance could be the right fit for your business’ insurance and risk management program.
Professional Liability Insurance
Professional liability insurance provides protection in the event of a liability claim for professionals providing a service. For those in the medical field, this coverage is called medical malpractice insurance, but the need for this kind of protection is not limited to physicians. The insurance will provide payments in the event of a judgment for errors or omissions resulting in financial loss or injury. Any professional, especially those with a fiduciary responsibility, should have protection, and service professionals with this type of insurance include accountants, consultants, real estate professionals, appraisers, lawyers and financial advisors, among others. If an individual is sued, their personal assets such as homes, cars and other possessions are potentially at risk. All it takes is one mistake for a potential financial disaster that could cause the end of a career or business.
Liability insurance policies can help cover legal expenses to defend against frivolous or unfounded lawsuits. For professionals working as an employee of an organization with its own malpractice insurance, they may want to consider having individual coverage, just to ensure they are properly protected.
What to look for?
You want to look for a policy that is specifically designed for your industry and provides protection for:
• Legal fees and other costs of defense
• Reimbursement for licensing board issues
• Settlements and court costs
There are many different types of specialized coverage. Some of the more common include:
Employment Practices Liability (EPLI) – Business owners with employees will want to have EPLI to cover claims for discrimination, harassment or wrongful termination. This coverage is specifically designed to help protect the insured and their business in the event an employee brings a suit or administrative charge.
Engineers and Architects Professional Liability – Coverage is provided for claims alleging a negligent act, error or omission in the performance of their professional services.
Not-For-Profit including Directors and Officers with Employment Practices Liability – This protects the directors and officers of not-for-profit organizations in the event of a suit for an actual or alleged wrongful act in connection with their position at the organization. EPLI coverage is also included to help protect the organization in the event an employee brings a suit or administrative charge related to employment practices. This may include things such as harassment, discrimination or wrongful termination.
Technology Services Errors and Omissions Liability – This coverage provides protection to specific types of businesses that provide their clients with technology services and covers the insured from liability arising from mistakes, whether real or alleged.
Professional liability insurance can be complicated, and as such we recommend a comprehensive review of your unique situation so we can tailor a solution for your needs. Contact us today for more information on this extremely important insurance protection.
Pollution Liability Insurance
Pollution liability insurance is also called environmental liability insurance. While you may think it is only for industries like energy, mining, power and manufacturers, this type of coverage is needed for many different types of businesses and industries. What is seen as a safe practice today may have long-reaching consequences into the future which can lead to the downfall of a business many years later. Pollution/environmental liability insurance is designed to protect businesses, both now and into the future.
How does it work? – Traditional business liability insurance policies do not provide coverage for pollution and environmental issues. Therefore, it is important to have environmental insurance that is designed for the specific needs of your business. Some of the coverage types which can be part of your overall risk management include pollution liability, environmental professional liability, contractors’ liability, transporter insurance and storage tank pollution liability. Environmental impairment liability insurance is often used in the sale or investment of a business to assure potential purchasers or investors that unknown conditions won’t present an issue in the future. With proper protection, your business can be protected against environmental claims, clean-up costs, and claims of bodily injury or property damage.
This type of coverage is designed to help control the risk of liability in two ways:
• First-party coverage – provides coverage for things like a spill or contamination
that requires immediate clean-up, such as an accidental chemical leak at your manufacturing facility. In that case, first-party pollution liability insurance could provide the funds for the cost of the clean-up and remediation.
• Third-party coverage – works to provide the necessary funds to protect businesses from actual release of pollutants from a facility which adversely affects others, such as the contamination of water supplies or a release of toxins into the air. For example, if there was a leak at your plant and toxins were released into the air in the surrounding community requiring residents to evacuate, your policy would pay for resulting costs and pay damages from resulting lawsuits. Third-party pollution insurance coverage could also provide protection if your product causes pollution while it’s being transported by a third party, such as a trucking company or railroad.
Cyber Liability Insurance
Social media, social networking, whatever name is put to blogs, podcasts, networking websites like Facebook and LinkedIn, micro-blogging services like Twitter and even your company website have opened up new risks for employers.
Traditional liability insurance products don’t address internet exposures. But by disseminating information to the public through the Internet, your business now has the same liability risks as publishers. Exposures such as copyright infringement, defamation, and invasion of privacy have opened the door to the newest insurance coverage – cyber liability.
Cyber liability insurance also covers a large range of loss exposures such as damages due to loss or theft of client data, email-transmitted libel, and introducing (accidently or otherwise) a virus into another business’ network. The coverage is constantly being expanded and continues to undergo changes to meet the obvious growth of communications capabilities in the cyber world.
The potential liability associated with all forms of electronic communication is rapidly evolving, but various insurers offer a growing list of coverages. Talk to us about ways we can both identify and cover your business’ cyber risks.