Professional Liability/Errors & Omissions

Those professionals providing client services have recently been held to an increasingly higher standard of care. Professional Liability insurance (aka Errors & Omissions and/or Malpractice Liability) is intended to protect against allegations of Errors & Omissions or Professional Malpractice against an individual professional or a professional services entity. Directors & Officers Liability and Employment Practices Liability are Included within the realm of Professional Liability. Coverage is most commonly written on claims-made policy forms.

Our Experience

Ms. Liljenberg places Professional Liability coverage for clients practicing in a variety of professions. In addition to dozens of engagements for Insurance Agents E&O, she can engage as an Expert Witness in a variety of Professional Liability cases involving non-insurance professionals.

Professional Liability expertise includes understanding nuances of:

• Insured vs. Insured language
• Duty to Defend
• The application/underwriting process.
• “Claims made” vs. “Claims made and reported”.
• Representations vs. warranties.
• Definitions of “claim” and “professional services”.
• Defense cost inside/outside liability limit.
• Extended reporting periods.

Business Climate

The environment for professional liability underwriting and coverage is subject to various factors, including:

• Escalating court settlements.
• Public belief in “deep pockets” able to pay.
• A lawsuit-conscious public fueled by 24/7 media.
• Abundance of lawyers.
• Punitive damages tripling damages in some states. -Professions with E&O Exposures

It is fairly easy to identify certain professions susceptible to Professional Liability claims:

• Attorneys
• Accountants
• Advertising / Media / Printers
• Architects & Engineers
• Environmental Consultants
• Insurance Agents
• Physicians / Dentists / Hospitals
• Real Estate Brokers / Property Managers
• Trustees / Fiduciaries

Though others may not be quite so obvious, the list of professionals with exposure to Errors & Omissions claims includes:

• Arbitrators and mediators
• Allied Health Care Professionals
• Bankers
• Claims adjusters
• Construction managers / Contractors
• Educators / School Boards
• Escrow agents
• Insurance Companies
• Nursing
• Payroll / billing processors
• Police / Public Officials
• Pharmacy
• Staffing / Professional employer organizations
• Third Party Administrators
• Travel Agents
• Website designers / Software programmers

Claims

Whether a given professional provided a proper standard of care is specific to the facts of each case. However, professional liability claims may include allegations of:

• Error, omission, or misrepresentation
• Failure to follow client instructions
• Failure to properly advise
• Failure to disclose material terms
• Failure to provide a service in a timely fashion
• Failure to keep client information confidential