Professional Liability Insurance
Also known as Errors & Omissions, (E&O) or Malpractice insurance. Provides coverage to defend and indemnify the insured against claims alleging negligent acts, errors or omissions in the performance of professional services (wrongful acts).
Commercial Package and Business Owner Package Policies
Insurance companies combine frequently requested coverage under one package known as Commercial Package Policies or Business Owners Policies (BOP). Policy is designed to include among other coverage:
- General Liability
- Commercial Property
- Non-Owned/Hired Automobile
- Valuable Papers and Records
- Business Interruption/Business Income Equipment Breakdown
- Accounts Receivable
Commercial General Liability Insurance
Designed to pay on behalf of the insured firm, all sums which the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an "occurrence" - defined to be an accident including continuous or repeated exposure to substantially the same general harmful conditions. Policy typically includes coverage for "personal injury" including libel and slander.
Owners and Contractors Protective Liability
Policy protects the owner or contractor against third party claims arising from his hiring independent contractors. The owner or the general contractor is designated as the insured covering bodily injury and property damage arising out of the operations of the design firm at the designated project.
Workers Compensation/Employers Liability Insurance
Part one of the policies (Workers Compensation) pays employee compensation for lost income and all medical expenses related to bodily injury by accident or disease attributed to job-related activities. These benefits vary by state. Part Two (Employers Liability) pays for damages (resulting directly from an employee's job-related bodily injury) for liability to a third party for damages claimed by the employee against the third party. Premiums are based on payrolls of employees and their duties which fall under certain classifications and rates.
Umbrella Liability Insurance
Designed to provide excess limits of liability for General Liability, Automobile Liability and Employers Liability. In addition, coverage is provided for many exclusions and gaps in the primary Liability policies designated as the underlying insurance.
Employment Practices Liability Insurance
Policy covers claims by employees against their employer for wrongful termination, discrimination (e.g., race, sex, age, disability, etc.), harassment, right to privacy, emotional distress and other employment practices.
Directors and Officers Liability Insurance
D&O policies contain two separate parts: part I pays on behalf of any directors or officers for their liability arising out of wrongful acts and part II is Company Reimbursement or Company Indemnification coverage, which reimburses the insured company for payment made to its directors or officers for their expenses incurred due to claims made against them for wrongful acts when provided by the company's bylaws or required by law. Wrongful Acts are defined to include errors, omissions, misstatements, misleading statements, breach of fiduciary duty or other duty by an Insured Person while acting in his or her capacity as a director or officer.
Statutory Disability Benefits Insurance
In addition to Workers Compensation Insurance, many states require that employees be covered by disability insurance that provides income for the time an employee is unable to work due to a non job-related injury or sickness. Benefits are very limited in terms of duration and amount and are generally not a good substitute for individual or group long-term disability insurance.
Fiduciary Liability
The Employee Retirement Income Security Act of 1974 (ERISA) created a burden on fiduciaries and trustees of employee benefit and retirement plans. Fiduciary Liability insurance protects the plans and individuals acting as trustees or fiduciaries from lawsuits alleging errors or omissions in the handling of investment funds. Insurance should not be confused with ERISA Bonds.
Automobile, Hired and Non-Owned Automobile Insurance
Commercial Automobile Insurance protects the firm and driver from claims of bodily injury and property damage caused during the operation of business-owned vehicles. If the firm does not own any vehicles, Non-Owned and Hired Automobile insurance should be purchased to cover accidents involving rented vehicles or employee vehicles used during the course of business operations.
Foreign Liability Policy
Typical General Liability policies insure the operations of the insured worldwide, but only for suits brought within the U.S. Depending on the location of the insured's foreign projects, this coverage is provided in a package policy that insures the firm's property in a foreign office as well as workers compensation coverage and repatriation for employees working abroad. Many foreign countries require coverage to be written with insurers domiciled in their native country as well and the typical foreign liability policy may not satisfy this requirement.
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