Professional Liability insurance coverage was initially designed to cover licensed and/or certified professionals such as accountants, lawyers, architects, physicians and engineers. Today, these policies have evolved to address the rapid changes in our economic delivery system. Modern business models commonly include service delivery promises as opposed to just product manufacturing and sales. If your organization has risk associated with potential economic harm you could cause your customer as a result of failing to provide a service as promised, then you may need to explore Errors & Omissions insurance.
Errors & Omissions policies include coverage for:
- Defense costs and legal liability for wrongful acts (errors, omissions) made by organization in providing a service
- Coverage of economic and/or consequential loss a customer may sustain from insured’s error/omission
- Insureds who may be held financially accountable for failures in fulfilling their service commitments
- Small business and large multinational corporations that perform or provide a service as opposed to manufacturing and selling a product
Types of E&O policies include:
- Media Liability—covers various media torts, especially those excluded by General Liability policy exclusion for insureds in the business of broadcasting, advertising, printing and publishing
- Technology E&O—covers losses arising out of the failure of a technology product or service to work as promised in the Service Level Agreement (SLA).
- Information Security/Cyber Risk—insures losses incurred as a result of a security breach and/or violation of the insured’s privacy and security policy, resulting in either economic harm or privacy/security regulatory violations of a third party's network. Can be combined with Tech E&O.
- Professional Liability—for the licensed/certified professional (see partial list above).
- Miscellaneous Professional Liability—a “catch-all” for other services that could result in an economic or contractual loss to a third party.
Many insurers have broad policies that address many of the overlapping/evolving exposures.
McGriff’s has skilled professionals with legal, risk management and underwriting experience who can help you evaluate and quantify these dynamic exposures. Our specialists offer a number of consulting services—in addition to insurance placement—to assist your company in developing the optimal E&O risk management strategies. These services may include:
- Facilitating an IT risk assessment workshop designed to identify and quantify the IT security-related risks your organization faces and the subsequent overlay of current countermeasure for effectiveness
- Assistance in the categorization of vendors and redevelopment of contract protocols
- Reviewing insurance for cyber and/or E&O provided by those vendors for adequacy
- Designing an insurance program that wraps around and sits over what your vendors are able to procure/evidence
- The “force-placement” of proper insurance as necessary
We have also developed proprietary miscellaneous professional liability policy language that addresses, on a broad-form basis, the coverage triggers and definitions necessary to a successful E&O placement. The policy is industry-leading in both the breath of the coverage and its ability to cover most E&O exposures, other than the true professional liability risks discussed above. The policy includes an option for exceptionally broad information security coverage (both first and third party), which is a common exposure faced by organizations that are in the service delivery chain today.
Visit the Network & Privacy Exposure section of our site for more information about capabilities in that highly specialized area.
Senior Vice President
- 10/21/15McGriff's Mary Guzman Speaks at NetDiligence Cyber Risk & Privacy Liability Forum
- 6/7/15McGriff Hosts 2015 ExecutiveEdge Conference
- 6/5/15McGriff's Bain Head Featured in Financier Worldwide's 2015 D&O Risk & Liability Annual Review
- 8/14/14McGriff Hosts Annual ExecutiveEdge Conference
- 7/11/14McGriff Hosts Third Annual LegalEdge Law Conference
- 7/1/14McGriff, Seibels & Williams recognizes latest recipient of the "Outstanding Non-General Counsel -Small" Award for 2014