General Liability vs. Professional Liability Insurance

A consultant recommends that a client purchase and implement software to automate certain manufacturing processes. An update to the software causes it to crash repeatedly, forcing the client to shut down its production lines for 10 days until a fix is available. The client sues the consultant for giving bad advice. A new commercial building develops a roof leak following heavy rains. An investigation shows that the roof structure is insufficient for handling torrential rains common to the area. The owner sues the architect over the design error. An accountant performing an audit for a town government does not notice a questionable pattern of expenditures. Later, it is discovered that an employee in the town clerk’s office embezzled more than 

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Does Your Board Have D&O Insurance?

Are you a board member for a non-profit or business? Pending litigation involving Richmond based Health Diagnostic Laboratory Inc illustrates the importance of Directors and Officers Liability insurance (D&O Insurance). Some of the directors and officers of HDL who are facing potential lawsuits will be able to access proceeds from a $10 million insurance policy to help pay their legal fees. What is D&O Insurance? Anyone who serves on the Board of Directors is a possible target for a variety of lawsuits and complaints about their conduct – particularly if the public or if plaintiff’s attorneys perceive them to have “deep pockets.” This can lead to devastating consequences for board members and directors who are unprepared: While corporations typically protect 

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