Professional Errors and Omissions Liability Coverage (Miscellaneous Professional Liability)
Errors & Omissions (E & O) Professional Liability insurance is purchased by companies to protect against the costly litigation that could arise from claims alleging negligence or inadequacy in the performance of their professional services. Any individual, partnership or corporation providing professional services can be exposed to liability as a result of any negligence in providing these services. E&O coverage also protects the mistakes of employees and Independent Contractors the firm may hire.
This coverage is not provided in Commercial General Liability (CGL) which primarily responds to property damage and bodily injury claims.
There are hundreds of forms of E&O insurance based on the type of industry or service you provide. Some policies are written based on specified professions such as:
- Accountants
- Architects & Engineers
- Accountants
- Architects & Engineers
- Associations
- Bankers
- Doctors
- Insurance Agents and Brokers
- Lawyers
There are a host of other businesses outside of traditional Errors & Omissions exposures that provide professional services to others. These would be considered Miscellaneous Professional Liability and there may be broader forms available for certain industry groups. Some examples are:
- Media: Broadcasters, Advertisers, Music/Entertainment, TV/Film producers
- Management Consultants
- E-Commerce
- Technology/Software providers or developers
- Advertising and Publishing Errors and Omissions
- Property Managers
Technology Errors and Omissions Liability Coverage is Errors and Omissions Liability Coverage specifically designed for technology companies.
Intellectual Property Liability Coverage Within Various Errors and Omissions Policies
This type of coverage is provides protection for various types of intellectual property such as copyrights, trademarks, domain names, slogans, etc. Technology Errors and Omissions policies often provide coverage for software code under copyright protection. Cyber liability coverages that include media errors and omissions provide coverage for copyright/trademark liability for digital content. Publishers errors and omissions provides this type of coverage for traditional media such as catalogs.
Cyber liability coverage
A term for a policy that includes coverage for risks encountered companies with Internet websites. The following are typical examples of cyber-liability coverages:
- Network security
- Privacy
- Digital Media
- Virus
- Digital advertising and personal injury
- Digital Asset Coverage
- Cyber extortion
- Digital business income coverage
eCommerce liability coverage is another term for cyber liability coverage
Network Security Liability Coverage within a Cyber Liability Policy
Coverage can be provided against allegations/claims made by third parties that were economically harmed by a breach in the insured’s network security. This type of coverage would cover disparaging information that is publicly made known, embarrassing information made public and identity theft. In some policies regulatory actions such as patient information and HIPAA fines and penalties are also covered.
Privacy Liability Coverage within a Cyber Liability Policy
Extends network security coverage to also cover paper files.
Media Liability Coverage within a Cyber Liability Policy
Coverage for content injury claims such as mis-use or unauthorized use of copyrighted material. When included in a cyber liability policy this refers to digital content. When coverage is for paper documents it is called Publishers Liability.
Warranty Coverage
Errors and omissions liability policies exclude claims arising out of contractual provisions if there is no error or omission causing the incident. Parties to contracts often add additional provisions such as warrantees that errors and omissions policies will not respond to. A warranty policy is tailored to cover specific warrantees in specific contracts. Examples of this would be covering the warranties involved in digital certificates and service level agreements.
Publishers Liability Coverage
Coverage for copyright and other disputes arising from content in publications such as brochures, books, manuals and catalogues.
Advertising Injury Coverage within a General Liability Policy
This covers injury arising out of libel or slander, the violation of the right to privacy, misappropriation of advertising ideas, or the infringement of copyright, title or slogan committed in the course of advertising goods and services. Most insurers exclude content on the internet. Some cyber liability policies permit an endorsement that adds coverage for digital content to eliminate this gap.
Personal Injury Coverage
Injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person's right to privacy committed other than in the course of advertising, publishing, broadcasting or telecasting. Due the last part of this wording companies that publish content on their website would not be covered unless they purchased a cyber liability policy with a personal injury endorsement.
Internal Breach of Security Coverage within a Cyber Liability Policy
When Network Security Liability coverage includes internal breach, it provides coverage for instances of network security breach by an employee or employees.
Example: A rogue employee abuses their access to the company network in order to obtain privacy information to cause identity theft.
Contingent Bodily Injury
When included in a cyber liability policy, this type of coverage would cover incidents where bodily injury damage to a third party occurred as a result of digital events.
Example: The insured has a website that provides information on drug interactions. A third party accesses the information and is hospitalized, due to the information being incorrect.
Digital Asset Protection
Coverage for loss of data and/or network resources in a cyber liability policy.
Business Income Coverage
In a traditional property insurance policy this covers loss of income by an insured that arises out of direct physical damage. An example would be plan store burning down and the insured losing revenue while it is being re built. When included in a cyber liability policy it covers loss of income due to network intrusion and/or other computer event that makes the network inaccessible or operates slowly.
Property Coverage
Fire and other peril coverage for physical property such as buildings and contents. When applied toward digital assets such as data it is called Digital Asset Protection.
Cyber Extortion
Coverage that pays for ransom money and, in some instances, the cost to investigate and/or catch extortionists. This applies only if it arises out of a third party claiming they have sensitive information gained from unauthorized access to your network, and that they will release this information to the public unless you pay the ransom. The data is being held hostage.
Directors and Officers Liability
Coverage for the fiduciary duties of directors and officers while acting in their capacity as a director or officer. This is not covered by any other policy.
Package (Property and Liability)
Most businesses have these coverages as they are usually the first insurance purchase made by business owners and there are usually discounts for buying them together. See property coverage and commercial general liability coverage.
Employment Practices Liability
EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. EPLI provides protection against many kinds of employee lawsuits, and will include all or some of the following:
- Sexual harassment
- Discrimination
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
Fiduciary Liability
Fiduciary liability insurance is a popular vehicle for the financial protection of fiduciaries of employee benefit plans against legal liability arising out of their role as fiduciaries, including the cost of defending those claims that seek to establish such liability. Most popular is a stand-alone form or separate fiduciary liability policy. Those having anything to do with pension, savings, profit-sharing, employee benefit, and health/welfare plans are liable to the beneficiaries for any breach of their fiduciary duties.
Crime Coverage
Fidelity/Crime Insurance protects organizations from loss of money, securities or inventory resulting from crime. Most companies purchase coverage for employee dishonesty.
