Errors & Omissions (E&O) Liability Insurance
Professional Indemnity Insurance provides essential financial protection for a wide range of professional advisers. In the event that a client suffers financial loss as a result of alleged neglect, error or omission, Professional Indemnity Insurance will meet the cost of defending claims and any damages payable.
Any person who gives advice, designs, or offers similar services in a professional capacity is seen by clients as an expert. In these times of high consumer awareness, clients will not hesitate to pursue a claim if they feel that they have received sub-standard service. The need for Professional Indemnity Insurance has never been greater.
Directors & Officers (D&O) Liability Insurance
Directors and Officers Liability Insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Think of Directors and Officers Insurance as a management Errors and Omissions policy.
Directors & Officers Liability Insurance can usually include Employment Practices Liability and sometimes Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be.
Directors and Officers Insurance is often confused with Errors & Omissions Liability. The two are not synonymous; Errors & Omissions is concerned with performance failures and negligence with respect to your products and services, not the performance and duties of management. Generally it is a good idea to carry both Directors and Officers Liability Insurance and Errors and Omissions Liability Insurance.
Typical lawsuits against directors and officers include allegations of:
- Mismanagement of operations or company assets
- Self-dealing and conflicts of interest
- Misrepresentation during the sale of company assets
- Misrepresentation in a private placement prospectus
- Acts beyond authority granted in by-laws
- Violation of certain state and federal laws
- Breach of fiduciary duties
At Key Insurance, we can custom tailor a Professional Liability Policy to suit your company's specific needs. Please give us a call or you may visit us and one of our representatives will be more than happy to assist you.