Liability exists when one party is legally responsible for the losses suffered by another party. Commercial General Liability (CGL) insurance provides protection against financial loss related to liability that arises when one person or business is legally responsible for the injury or property damage suffered by another.
Liability insurance provides:
• Indemnity--insurance company pays for damages or injury for which the insured is held legally liable.
• Defense--insurance company provides a legal defense against claims of liability.
Professinoal liability, also known as Errors and Omissions (E&O), covers an error, omission or misrepresentation made while providing a professional service. Errors can arise from negligence, faulty materials, and disagreements over finished work. Even missing contractual deadlines can put a business in legal jeopardy.
E&O insurance policies are tailored for many specific professions. Miscellaneous E&O polices cover others. E&O policies cover legal defense and punitive court awarded damages, even if you did nothing wrong.
Following a data breach of Personally Identifiable Information, federal and state laws kick in with many different requirements. All those affected must be notified according to the state law where each resides. Attorneys determine legal requirements. Many companies pay for credit monitoring. Forensic IT staff determine the extent of the breach. Security experts toughen defenses and others test them. All these professionals have expensive meters. Cyber liability covers their costs.
Employment Practices Liability Insurance (EPLI) cover legal defense and damages from law suits covering sexual harassment, wrongful termination, contract violations, and wage and hour laws. Even when the employer did nothing wrong, legal fees run up quickly. Employees win over 60% of cases tried in court. The median compensatory award is $325,000.
Management Liability, also known as Directors and Officers (D&O), protects the decisions made by an organization's management. Frequently required by investors, D&O policies cover defense costs for investigations of criminal acts or regulations. Where E&O covers professional services D&O covers management from shareholder lawsuits, or poaching competitor employees and stolen trade secret lawsuits for example.
The Business Owner's Policy is a self-contained, complete package form designed for the small to medium sized business covering buildings and business personal property. The Business Owner's Policy also provides liability coverage on an occurrence basis (as opposed to 'claims made' see FAQ). Business Owner's Policies focus on businesses with lower liability risk and more property risk.
Environmental Pollution Liability Insurance covers remediation expenses for releasing contaminants into the environment. Pollution insurance is crafted to provide coverage for specific exposures such as gas leaks, contaminated soil, oil spills, lead, mold, or asbestos work, which are generally excluded from General Liability policies.
Technology Errors & Omissions Insurance (Tech E&O) covers businesses providing technology services to their clients. A Tech E&O policy covers legal defense, settlements and breach of contract allegations, even when the business is not at fault. For example, suppose a company creates software for organizing documents. The client's systems crash losing accounting data and customer records, and they blame the software. The resulting lawsuit could potentially ruin the business without a Tech E&O policy in place. A Tech E&O policy also covers lost income during the court case.
Nationwide marine definition includes those risks that are underwritten by marine underwriters. Coming from the marine tradition, these underwriters focus on:
• Property in Transit,
• Personal Property Floaters,
• Film & Theater
• Instruments of communication and transportation
• Surgical Equipment,
• Tools and Equipment
A contract surety bond,is a three-way legal contract where a third party guarantees one party's performance or payment on another contract to a second party. Frequently construction, contract surety helps smaller contractors tackle larger jobs than they have handled previously, by providing comfort to their client, frequently the government, that the contract will be completed. Contract surety frequently incorporates professional management of construction funds.
Commercial surety bonds represent a broad range of bonds that do not fit the classification of contract. They are generally divided into four sub-types: court, public official, license and permit, and miscellaneous bonds. Court bonds fall in two categories: fiduciary and judicial. Fiduciary bonds require faithful performance and completion of the duties of a trustee, conservator or guardian. Judicial bonds are required in certain litigation proceedings such as appeal, injunction or release of lien.
Crime policies cover robbery, burglary, larceny, and sometimes mysterious disappearance--all part of theft--on the premises, meaning the interior of any building occupied by the insured conducting business. The premises may be amended by endorsement to include show cases and show windows outside the premise but inside the building line.Crime policies have special treatment for custodians, messengers, and watchpersons. Crime policies include inspections, surveys and audits.