Professional Liability E&O Vs D&O

Discussion in 'E&O - Errors and Omissions for Insurance Agents' started by bill777, Aug 6, 2011.

  1. joshb
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    joshb Well-Known Member

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    Bill just to add a little bit more, if you are sending your clients info and applications to a brokerage company and they send you a quote based off of what you sent them, you need to make sure 1) that you have the right coverages for the clients needs 2) that the broker understands what coverages you are looking for, and 3) That they actually gave you what you are looking for. There have been several times, where I have sent apps in and gotten quotes in return that excluded products and completed ops etc. even though I specfically asked for it.
     
  2. bill777
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    bill777 Well-Known Member

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    i looked up online and some insurers include E&O coverage in the D&O policy.

    Professional liability coverage for individual members as well as for organizations Harleysville's new Directors & Officers (D&O) Liability Policy provides:
    • Protection against lawsuits for alleged discrimination, errors and omissions, misstatements, neglect, breach of duty and other wrongful acts.
    • Up to $1 million in professional liability coverage for you, with automatic coverage for your organization.
    • Coverage for past, present and future directors, officers, employees, trustees, volunteers and committee members of your organization.
     
  3. OCinsurance
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    OCinsurance Well-Known Member

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    Remember to also quote the EPLI and the Fiduciary liability and crime insurance (if they have a need). I have several carriers for non profits nd many often packages for the GL, property, d and o, epli, and more. From whom have you gotten quotes so far?
     
  4. bill777
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    bill777 Well-Known Member

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    i got a quote from morstan ga then my client showed up apologizing that he only wants commercial liability for now then he might switch to d&o as my underwriter got him a very good quote for d&o.
     
  5. Guest
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    Billy boy, Its YOUR job to get the client what he NEEDS and if you are IA, to find it at the best possible rate,

    If the client choses NOT to accept everything you reccomend, then you better have them sign a waiver that you advised them to get it........

    CYA!
     
  6. OCinsurance
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    OCinsurance Well-Known Member

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    Have you considered sending you client samples claims?
     
  7. Sales71
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    Sales71 Well-Known Member

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    Well get him what he needs now. Have him sign on the other coverage that he choose not to buy. And bring the other policies in the annual review appointment. He could be short on money for now. Time to look at the next client.
     
  8. djs
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    djs Super Moderator Moderator

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    Confused here.....

    Why would you get general liability now and then SWITCH to D&O? D&O does not cover general liability.

    Myabe you just mean 'add'? Budgets are budgets, I get that, but I've never seen a board refuse D&O coverage once they understand the risks correctly to themselves. Nobody explains this when they join a non-profit board.

    Dan
     
  9. kristophmarsh
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    kristophmarsh Member

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    Just in case anyone stumbles across this post, I just thought I'd clarify what type of coverages a non-profit organisation like this might need. Here's a quick run-down of the products discussed:

    D&O
    D&O protects a non-profit's directors and officers from managerial related claims, including allegations such as mismanagement, misstatement, wrongful acts and errors made in their role. A typical policy usually has two insuring clauses; Side-A, which protects individuals when the organisation can't financially assist them, and Side-B which reimburses the organisation for any funds spent defending its managers.

    Management liability
    Small non-profits such as this one will often purchase what is known as Management Liability insurance (ML). ML is a broader type of D&O policy designed specifically for the needs of small and medium enterprises. In addition to D&O, which comes as standard, ML often includes a range of other coverages such as:
    • Executive liability: standard D&O coverage for managers
    • Corporate liability: broad civil liability coverage for claims made against the entity
    • Employment practices liability: entity coverage for employment-related claims
    • Trustee liability: entity coverage for claims arising from the management of retirement, superannuation or 401k schemes
    • Crime: coverage for crime committed against the entity, such as fraud and misappropriation
    • Statutory liability: entity coverage for pecuniary penalties and possibly fines, resulting from breaches in legislation
    • Taxation investigation: coverage for investigations undertaken by taxation authorities

    Professional indemnity
    Professional indemnity (PI), also known as Errors and omissions (E&O), protects the non-profit for any services or advice it provides to its customers or stakeholders. If its services or advice is incorrect or results in financial loss to another party, PI insurance will cover the legal costs of defending the claim. If the advice is considered incidental and low risk, an underwriter may offer it under the ML policy (above).

    General liability
    General liability (GL) covers the non-profit for any physical risks it may have. Specifically, it protects it against any personal injury or property damage caused to a third party, such as its customers, stakeholders or the general public. Injury to employees or volunteers would not be covered under this; you would need some form of workers compensation or personal accident insurance.
     
    Last edited: Jan 10, 2016
  10. safeandsound
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    safeandsound Member

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    I appreciate that!
     

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