Does Your Company Need E&O Liability Coverage?
“Learned professions” including legal, medical, engineering, accounting and financial services firms were formerly alone in being regarded as professional services firms. According to a number of courts, though, this term has been broadened to describe a wider and more diverse group including firms providing physical or manual services. These firms can include plumbers, roofers, exterminators, locksmiths, handymen and home inspectors. As a result, professional services exclusions in CGL policies now apply to a much wider range of firms, eliminating coverage for claims of professional errors or omissions.
This rule of thumb is useful – if your firm operates in a state in which you are regulated and licensed, it is likely vulnerable to a professional services exclusion. However, the absence of regulation or licensing does not automatically mean your firm will be exempted from the determination of “professional” and the exclusion. Owing to this confusion, we recommend seeking guidance from an insurance professional.
To learn more about your firm’s professional liability risk, and to discuss how E&O coverage can help protect it one minute from normal when there is an exclusion in your CGL policy, please contact your relationship manager at KMRD Partners. They can provide advice regarding your firm’s situation regarding this critical issue.
How KMRD Can Help:
KMRD delivers risk management and human capital solutions to over 600 clients nationwide. Our award-winning team, disciplined approach, proven processes, combined with our risk management portal make KMRD the leading choice to improve business protection and reduce the overall cost of risk.