Your Professional Services Need to be Insured
Depending on your profession, clients may sue for negligence for alleged mistakes or errors. Even without a mistake, a client may make poor decisions based on your company’s advice or prediction and blame the company for a loss of income, costing your company thousands of dollars in legal fees alone.
Types of Professional Liability Insurance
Errors & Omission Insurance (E&O)
This type of insurance covers the cost of legal fees in the event of alleged negligence, errors in services, omissions, misrepresentation, violation of good faith and fair dealing, or inaccurate advice.
Director & Officer Insurance (D&O)
Many individuals are involved, actively and passively, in a company’s actions. Director and Officer Insurance covers claims filed against corporate management for alleged misconduct. This is particularly important for organizations that can be sued for financial mismanagement, from potential claims that upper management impacted the financial loss of another company.
Fiduciary Liability Insurance
Those hired to manage employee benefit plans may be held personally responsible for mismanagement or loss of employee funds, according to the Employee Retirement Income Security Act or ERSA Act of 1974. This means that a company’s financial officers may be personally liable for alleged employee benefit lawsuits costing thousands of dollars.