Specialized Liability Insurance – What It Is & Why You Need It

Specialized liability insurance meets specific needs of businesses, organizations, contractors, and entrepreneurs. It offers additional protection beyond standard commercial insurance policies.

If you run group events, provide advice or instruction to clients, or rely on your business for income, it’s a must.

What Does It Include?

Your insurance agent tailors your specialized insurance coverage to your specific needs. However, policies typically include core coverages such as protection against bodily injury and property damage claims. These include claims from your operation, premises, products you sell, injuries to clients and visitors, and even your advertising. Policies often waive the deductible for liability claims.

A specialized insurance policy may also include the following coverages:

Errors and Omissions Liability Insurance (E & O)

This coverage suits any business or organization that offers advice, educated recommendations, designs solutions, or works on the behalf of others. Examples include consultants, accountants, counselors, contractors, appraisers, home inspectors and real estate agents.

Adding E&O coverage to your policy ensures you’re protected from the staggering legal defense costs if someone decides to take you to court. You’ll incur these legal costs, even for an unfounded claim.

According to Lawyers.com, the hourly fee for a lawyer is $200 to $400 per hour and that doesn’t include court costs or a settlement. Errors and Omissions Liability Insurance covers these fees and a judgment, up to the policy limit.

Employment Practices Liability Insurance (EPLI)

Employment practices liability insurance protects employers against claims of discrimination (sex, race, age or disability), wrongful termination, harassment, and more.

According to the Insurance Information Institute, the number of lawsuits filed against employers by employees is on the rise. Consequently, insurers offer protection to all businesses and organizations, regardless of size.

A disgruntled worker or past employee who brings a lawsuit or discrimination charge against you could put you out of business, whether their claim is valid or not. Employment Practices coverage pays legal and court costs and the settlement.

Directors and Officers Liability Insurance (D & O)

Serving as a director or officer of a company, non-profit, or organization includes inherent risks. One is the prospect of a lawsuit and claims are on the rise.

Unfortunately, many officers and directors don’t consider the implications until someone claims for damages. Claims often originate from allegations that board or management decisions lacked oversight.

Additionally, many directors and officers in recreational associations, non-profits, and business face lawsuits when hackers comprise personally identifiable information. Poor risk management or governance practices can lead to in inadequate defenses and data breaches or hacks.

Cyber Liability Insurance

Unfortunately, no business or organization can protect themselves from hacks and data breaches when they rely on technology alone. Too many risks exist and criminals continually develop more ways to access data.

Cyber liability insurance provides financial protection against the considerable costs of a breach or hack. A legal defense, settlement, lost fund transfers, lost or destroyed data, extortion, fraud, credit monitoring services, penalties and fines, and income lost due an interruption in business can all bring a business or organization to its knees quickly without proper insurance coverage.

Let Young Insurance Group create a specialized insurance policy to protect your business or organization well. Our Colorado independent insurance agency works for you, not the insurers. We ensure you receive the best possible insurance product at the most reasonable cost.