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| Please click one of the following questions to see the answer or ask a question here. |
Questions:
• Who is Covered under a Commercial General Liability Policy ?
• What is Employment Practice Liability Insurance (EPLI) ?
• What is Commercial General Liability
• Does My Profession and Scope of Work Performace Matter?
• Do I need Professional Liability or "Errors & Omissions" Insurance ?
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Who is Covered under a Commercial General Liability Policy ?
A: *If your business is a partnership or joint venture, this policy would cover all partners or members and their spouses , but only if they're sued because of something they did while acting in an official capacity for your business
* If your business is a corporation or association, this policy would also cover all executive officers, directors, and stockholders -- while acting in these official capacities.
* Your employees would also be protected while they are acting in their capacity as employees
* While acting under your direction and within the scope of their responsibilities for you, any volunteers for your business would also be extended liability coverage.
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What is Employment Practice Liability Insurance (EPLI) ?
A: Employment Practices Liability Insurance (EPLI) provides broad insurance protection from such employment-related claims and lawsuits brought against a company, its managers and employees, and its directors and officers.
How It Works
EPLI policies are written on a claims-made basis. That is, in order for a claim to be covered, it must be reported to the insurance company during the policy term -- or within any extended reporting period granted by the insurer. In addition, the event leading to the claim must have occurred on or after the policy's retroactive date (typically, the earliest date of continuous EPLI coverage). Some insurers offer extended retroactive dates or full prior acts coverage.
You can generally purchase insurance limits of $1 million up to $25 million. Premiums depend on the type, size and risk profile of your business. A company's employee manual and personnel policies may be considered when determining risk, especially among larger firms.
Most EPLI policies include a deductible. In addition, the cost of defense is typically included in the aggregate insurance limits, along with the costs of judgments and settlements.
Some Directors & Officers Insurance policies contain Employment Practice Liability coverage. However, such coverage can be limited to directors and officers and may have greater exclusions than a stand-alone EPLI policy.
Also note that some EPLI policies may contain exclusions that limit coverage during events such as a major work force reduction, acquisition or merger. Generally, criminal conduct is not covered by EPLI. It is important to review exclusions and coverage limitations when selecting an EPLI policy.
All companies, regardless of size, should seriously examine their personnel policies in light of increases in both the number and severity of employment-related claims. In addition, EPLI can be an invaluable tool in your risk management arsenal
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What is Commercial General Liability
A: The General Liability Insurance coverage is comparable to a typical Commercial General Liability (CGL) policy, providing protection against claims of bodily injury or property damage for which your business may be liable. Insurance to Protect You Against Lawsuits Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. |
Does My Profession and Scope of Work Performace Matter?
A: yes, Many firms that engage in delivering professional services obtain E&O insurance. These policies are typically issued in increments of $1,000,000 in coverage with deductibles from $1,000 per claim to $25,000. A number of insurance companies offer specialized professional liability policies developed for specific professions.
It is worth your while to work with an agent from Gold Mountain Insurance Services that has access to numerous insurance carriers so you can have some confidence that they can obtain the broadest possible coverage for you at a competitive rate.
It is very important for you to be aware that virtually all professional liability insurance policies are issued on a claims-made basis. That means that coverage is only provided for work that is done during the policy period and for claims that are filed (made) during the policy period. In effect, if an E&O insurance policy is cancelled, and no provision is made for an extended reporting period, then all coverage stops and it is as if you never had a policy.
Finally, every insurance policy contains exclusions. It is important for you to analyze the professional risks that are most threatening to your business and seek insurance that covers those risks. Discuss your concerns with your agent. He or she can help you identify a Professional Liability insurance policy that fits your needs.
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Do I need Professional Liability or "Errors & Omissions" Insurance ?
A: yes, Professional Liability or "Errors & Omissions" Insurance provides coverage in the event you are legally obligated to pay for economic damages to your client or a third party allegedly caused by your negligence, error or omission in the performance of your professional services.
Professional liability coverage is separate from a General Liability (GL) policy which would cover you mainly for bodily injury or property damage liability.
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