Professional Liability/Errors & Omissions
General Liability insurance does not protect your business against claims of professional negligence, or for failure to perform your professional duties. For this type of coverage, the business will need a separate Professional Liability policy. Professional Liability Insurance protects your business against loss from a claim of alleged negligent acts, errors or omissions in the performance of your professional services. The policy normally pays for any resulting judgments against you, including court costs, up to the coverage limits on your policy.
Privacy and Data Breach Liability Coverage
Privacy Breach Insurance offers first and third party coverage for electronic and non-electronic security and data breach events, including physical theft or any breach of privacy. In addition, Healthcare Information Privacy Protection insurance is available, which addresses the unique exposures faced by the healthcare industry subject to the Health Insurance Portability and Accountability Act (HIPAA) and the HITECH breach notification law. Privacy coverage includes the following:
- Any breach of any right to privacy or consumer data protection law
- Acts performed by contractors, vendors, and outsourcers on your behalf
- Privacy claims by employees
- Breach of confidentiality including commercial information
- Unfair competition related to your failure to maintain security
- Any civil regulatory action related to your failure to maintain security
- Intellectual Property infringement
- Defamation, trade libel, product disparagement
- Negligent transmission of a computer virus, worm, logic bomb or Trojan horse
The Security Coverage responds to first party costs related to a security failure. A typical security failure would include an instance where sensitive personal information is lost and the insured is subject to laws which require the insured to notify those affected. Costs covered include:
- Forensic Costs - including costs to determine the extent of the unauthorized access with sensitive personal information and legal fees for client attorney privilege
- Notification Costs - including postage, printing, drafting, call center, and advertisements
- Credit Protection Costs - including credit monitoring services, credit freezes, or fraud alerts
- Crisis Management Expenses - including fees for a public relations firm
The following coverages can be endorsed to the policy as well:
- Hacker damage
- Cyber business Interruption
- Cyber extortion
Typical events that can lead to this type of coverage being needed are electronic hacks or non-electronic breaches such as lost paper files, backup tapes, laptops, as well as social engineering or phishing.The following business types are especially at risk:
- Technology Companies
- Healthcare Providers
- Professional Services Companies
- Any company with consumer information including credit card data.
Employment Practices Liability
Employment Practices Liability coverage protects an employer against an employee's claims such as:
- Wrongful Termination, Sexual or Workplace Harassment, Wrongful Discipline, Age Discrimination, Violation of Employment Discrimination Laws, Violation of Americans with Disabilities Act, Wrongful Failure to Employ or PromoteWrongful Deprivation of a Career Opportunity, Breach of Employment Contract, Employment Related Misrepresentation, Failure to Adopt Adequate Workplace Employment Policies & Procedures, Illegal Retaliatory Treatment Invasion of Privacy, Negligent Evaluation.
- Employment Related Wrongful Infliction of Emotional Distress
The purpose of this insurance is to protect the corporation, directors, officers and employees from alleged employment-related wrongful acts. Some features to having this policy are Coverage for front/back pay, attorneys’ fees and compensatory damages, for punitive damages where insurable by law, for actual or alleged retaliatory treatment, varying retention's for class action suits or other claims, for emotional distress or mental anguish, no purposeful or intentional acts exclusion or reductions in force or mass layoffs exclusion. *Coverage varies from company to company.
Directors & Officers Liability
Directors and Officers Liability coverage protects directors and officers against claims alleging negligence, errors and omissions, misstatements, misleading statements and misrepresentations.
Most organizations have a general liability policy that protects its directors and officers against negligent acts that result in bodily injury or property damage. However, general liability does not protect against alleged wrongful acts or omissions, including breach of duty, which do not result in bodily injury.
Directors and Officers coverage protects your executives from potential lawsuits resulting from key decisions or management practices-lawsuits that may target their personal assets.
A comprehensive Directors & Officers liability policy can provide the following:
- Directors Officers Committee Members Volunteers
- Trustees or Employees
A comprehensive D&O liability policy can:
- Defend Prior Acts
- Defend Non-Monetary Damages
- Provide Duty to Defend Coverage
- Defend Libel, Slander & Defamation of Character
- Defend Discrimination, Sexual Harassment and Wrongful Discharge
Crime Coverage can extend to those who may have access to your company’s funds and include coverage for:
- Employee Dishonesty Money & Securities
- Forgery & Depository