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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Directors & Officers Insurance

For the last several years, stories of wrongdoing and bad judgment by corporate managers have filled the headlines. Enron, Worldcom, and Countrywide are just some of the companies that became household names because of mistakes or criminal acts their leaders committed. These stories became big news because they were exceptional; the vast majority of companies do not fail in such a spectacular fashion. However, all corporate managers have the potential to make mistakes, and some mistakes can lead to significant losses for the company, its shareholders, employees and vendors. When this happens, having the appropriate insurance coverage can make all the difference between survival or corporate and personal bankruptcy. General Liability Insurance Most businesses carry commercial general liability insurance that 

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Professional Liability Insurance

Professional liability insurance, or errors and omissions (E&O) insurance, is a type of coverage that protects certain individuals and corporations that provide professional services to their clients. For insurance purposes, “professionals” are defined as those who have special knowledge or skills in a certain area and who use those skills or knowledge to provide advice and services to others for a fee. Doctors, lawyers, architects, engineers and accountants have always been considered “professionals” under this definition, and thus have had a need for professional liability coverage (also called malpractice insurance). But as negligence lawsuits against all kinds of businesses have increased, professional liability insurance has become a necessary line of defense for a variety of professionals. It is now commonplace 

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