Insurance agents provide services to individuals, families, businesses, and corporations by helping them find and receive the proper coverages for their insurance needs. Most agents do not consider the risk they take being involved with this profession. The recommendations you make for your client or the coverages you choose not to select may come back to you as a liability if your client feels you used poor judgment. If your client feels you did not act with their best interest concerning the policy or lack of a policy, they can file a lawsuit against you. This becomes a liability to your career, income, and possessions. If an agent does not have E&O, you risk the possibility of being held financially responsible for the damages if you are involved in a claim.

Did you know that your general liability policy does not cover you for damage arising out of manufactured products if it does not cause bodily injury and or property damage? Most policies using the standard ISO form agree to pay sums where an insured becomes “legally obligated to pay as damages because of bodily injury or property damage.” Additionally, “damage to impaired property exclusion,” which is found in most general liability coverage forms, can potentially create a significant impact on a manufacturer’s overall risk of exposure. This can leave a manufacturer with large financial losses. Manufacturers’ errors and omissions insurance is designed to cover gaps in your general liability policy.

Employment practices liability protects the employer against claims made by employees, former employees, or potential employees. It will cover you for discrimination (age, sex, race, disability, etc.), sexual harassment, and wrongful termination of employment. Companies are finding that they are vulnerable from the pre-hiring process to the exit interview, even if a person was never hired or they were an employee a few days, you are open to liability. Even if a claim is groundless or fraudulent, the defense of a suit can be a financial drain as well as time-consuming.

Cyber liability, aka data break coverage, is the cutting edge protection for exposures arising out of internet and computer communications activity. Professional service firms are at risk of cyber liability. This is due to the fact that we are increasingly dependent upon the internet and computer networks for communicating with clients, performing professional services, transmitting and storing sensitive data, and maintaining websites.

Miscellaneous professional liability insurance, sometimes called miscellaneous errors and omissions cover liabilities from errors or omissions not intentionally committed during the course of offering a professional service for a fee. Miscellaneous E&O is the catchall of E&O insurance. This area of coverage varies from insurance carrier to insurance carrier. It may include media, real estate, property managers, etc. This can also include third-party administrators and claims adjusters, among others.

Directors and Officers Liability insurance is very important to nonprofit organizations. These organizations rely on volunteers to make up their board of directors that make crucial decisions for the organization. Even though they are volunteers working in good faith, they are open to personal liability, which could put their personal finances in jeopardy. By understanding the risks involved and having D&O insurance, you will have a better chance of attracting and retaining quality board members. D&O insurance can help the organization, along with its members, overcome a wrongful act claim should the occasion arise. This coverage should also be extended to cover employment practices lawsuits that cover allegations of discrimination and harassment.

D&O insurance for publicly traded companies is crucial protection. D&O insures the “behavior” in the decisions made by the directors and officers of the company, which may lead to covered claims. Your risks lie in actions brought on by private plaintiffs looking for a quick payout. Even innocent errors in judgment made by an executive can initiate a claim.

While you may think you don’t need D&O insurance because you are a privately-held, family-owned company, think again. You are at risk of claims from stockholders, employees, and competitors that could bring a claim against the directors of your company. Remember, your general liability or commercial umbrella policy does not cover D&O or employment practices liability exposures. Legal expenses alone can put a company out of business, not to say what the damages awarded could do to your company.

We continue to see banks across the country close their doors. We continue to see mergers and acquisitions in the banking industry. These activities can lead to a claim against the directors and officers of a financial institution. D&O Insurance can protect your personal assets for decisions made as part of a board of directors. If you have not looked at this important coverage in a while, now is the time to do so.

Are you the owner or officer of a company who makes decisions about the 401(k) plan for the company? Your personal assets could be at risk. You could be held personally liable for losses to a benefit plan incurred as a result of your alleged error, omission, or breach of fiduciary duty. A fiduciary liability policy can address these areas of concern.