5 Additional Insurance Coverages to Consider
There are so many additional insurance policies that are available in the market today. In the event of a claim, the right insurance coverage can help financially protect your organization. If you’re new to managing your organization’s insurance program, how do you know which policies are right for you?
Here are 5 types of liability coverage you may not know about:
1. Directors and Officers (D&O) Liability
This provides coverage for actions brought against the Directors and Officers of your organization for actual or alleged errors relating to corporate governance. Directors and Officers coverage protects the corporation’s assets against its indemnification of the individual officers or directors. It also helps pay for defense costs and erodes the limits of the policy.
2. Employment Practices Liability Insurance (EPLI)
EPLI provides protection from employment-related claims and lawsuits brought against the company, such as discrimination, wrongful termination, sexual harassment and negligent hiring practices. Employee lawsuits and discrimination allegations are excluded under standard general liability coverage. So, without an EPLI policy in place, you’re 100% self-insuring the risk.
3. Professional Liability/Errors & Omissions
If you provide any sort of professional service, you need this coverage. E&O is professional liability insurance that covers a mistake or negligent service that results in a third-party financial loss without bodily injury or property damage. Most E&O policies are “claims-made policies,” which means that for the claim to be covered, both the work in question must be performed and the claim must be made during the policy period.
4. Fiduciary Liability
Fiduciary Liability is the liability that exists under ERISA (Employee Retirement Income Security Act) for the employees of an organization who design, administer and manage an employer's pension, savings, profit-sharing, employee benefit, and health and welfare plans. Fiduciary liability insurance protects employers, their directors and officers and stockholders, as well as those employees who are authorized to administer the plan against errors and omissions claims made against them by employees and plan beneficiaries.
5. Cyber Liability
Cyber Liability insurance is specifically designed to address the risks that come with using modern technology; risks that other types of business liability coverage simply won’t. The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure. It's important to work with a broker that can identify your areas of risk so a policy can be tailored to fit your unique situation.
Contact the Assurance ‘A’ Team to learn more about adding these important coverages to your portfolio.
- Executive Liability Flyer
- Liability E-Book
- The Legal Benefits of Directors & Officers Liability
- Do I Really Need EPLI?
- The Down Low on E&O
- Exposed! Don't Get Burned by a Cyberattack
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