Professional liability insurance is most commonly associated with liability coverage relating to your professional activities. Many people use the term interchangeably with errors and omissions (E&O) insurance or professional liability insurance (PLI) or professional indemnity insurance (PII). A rose by any other name still helps to protect your personal assets from the fallout related to mistakes and oversights made in the course of professional services you provide.
Ultimately, it can lead to a lot of confusion when the time comes to purchase an insurance policy for your professional needs. That’s one reason it’s so important to work with independent insurance professionals, like our agents here at Johl & Company. We can help you understand what your professional insurance needs are and identify the policy that will best help you meet those needs for protection.
One other, important, thing to remember is that not all professional liability insurance policies offer the same types of protection. Depending on your specific role within your organization you may need specific liability insurance coverage.
These are some of the liability policies, in addition to errors and omissions (E&O) insurance policy, that you may need for yourself or your business.
Directors and Officers (D&O) Liability Insurance
This type of insurance coverage is known by many other names as well. Among them are executive liability insurance and management liability insurance. It covers exposures that managers, officers, and directors face as a result of their business decisions. In addition to offering coverage for damages awarded, this type of insurance covers legal fees up to the plan’s limits.
Employment Practices Liability (EPL) Insurance
This type of insurance applies to liability claims resulting from discrimination in hiring practices and employee treatment. Discrimination can be based on a wide range of issues including:
EPLI coverage also extends to issues such as harassment, breach of contract, wrongful termination, and retaliation.
Employee Benefits Liability (EBL) Insurance
This liability protection extends to claims related to errors and omissions in the administration of employee benefits. Small mistakes can cost administrators and the business big if there were mistakes made in the administration of benefits, such as designating the wrong beneficiary, failing to make requested changes in status, forgetting to add life insurance coverage, or even failing to let an employee know about his or her eligibility status in a timely manner.
Cyber Liability Insurance
This type of insurance is an essential type of coverage for any business that deals with computers and the Internet. With so many big businesses falling victim to hackers, it’s a given that smaller businesses, with fewer resources, will have an even more difficult time holding them off. Cyber liability coverage provides protection for your business in the event of a data breach.
Fiduciary Liability Insurance
This coverage offers protection for claims related to mismanagement of employee benefit plans or errors and omissions resulting from breaches in fiduciary responsibilities.
Working with Johl & Company
There’s a lot to work through when it comes to determining your liability insurance needs as a business. In addition to general liability insurance, one or more of the policies above may be necessary in order to protect your business and personal interests.
Johl & Company can help you determine the insurance coverage needs for your business and help you find the right policy to meet those needs without letting the cost of coverage get out of control.