We live in a world where lawsuits are common. Private firms are no longer immune from litigation from employees, competitors and even the government. Management or professional liability insurance is not just good business; it is as necessary as heat and lighting for your office. Statutes, federal and state laws change on a regular basis, so it is vital that your company protect its assets with management or professional liability insurance.
Issues to Consider
- General Liability Insurance does not cover the risks of Employment Liability, Professional Liability, and Directors and Officers Liability. You need a separate insurance policy to cover these risks.
- Defense costs are going up at a rapid rate. Insurance can provide needed defense coverage, even if you are not liable.
- Company owners can be held personally liable for their actions as well as the actions of other managers or executives.
- The cost of the average Directors and Officers lawsuit is over $600,000 according to Chubb Insurance Company. 38% of these claims involve employment issues.
- 25% of private firms had some sort of employment issue that could not be resolved without legal counsel involvement. The average defense costs are $250 per hour.
- Many firms fail to purchase Cyber Insurance. However, the average cost of each compromised record is around $175.00. Most states have laws requiring notification if you have had an incident.
The best thing you can do is call our office and have us provide you with a risk review including coverage options. Once you have had a chance to review coverage and pricing, then you can make an informed decision.