Whether you are a home business owner or you run a multinational company, you are under the constant threat of a lawsuit. A negligent act or a dip in the stock market can mean big trouble for a business owner -; while general liability coverage protects against most legal dangers, it won’t protect officers and directors from mistakes. Here, you will learn about lesser-known Liability Insurance in Mundelein IL that may suit your coverage needs.
E&O (Errors and Omissions) Liability Coverage
This type of Liability Insurance in Mundelein IL covers lawsuits stemming from the negligent rendering of services, or the failure to perform a professional duty. IT companies, accountants, engineers, lawyers and anyone else providing service for a fee can use this coverage. An E&O policy typically covers legal, judgment and settlement costs up to the coverage limit, which usually starts at $1 million and carries a deductible of up to $25,000. Exclusions on E&O policies include claims stemming from criminal acts, property damage or injury, and punitive damages.
Factors Affecting the Cost of Insurance
A business’ location, its nature, and the individual’s claims history can affect the cost of liability insurance from Alamo Insurance. These policies are retroactive, meaning that claims before the retroactive date will not be paid. Most policies allow buyers to get ‘tail coverage’ which pays claims made after the policy is discontinued. With an E&O policy, an insurer usually takes control of the insured’s legal defense, but may not be required to indemnify them for a settlement.
D&O (Directors and Officers) Liability Coverage
These policies offer protection to officers and directors of large companies. They protect against judgments arising from poor investment decisions, illegal acts, negligence and other errors. Any officer or director who’s accountable to customers, employees, creditors and shareholders can use this coverage. Most policies exclude fraud claims, prior acts, bodily injury, property damage and punitive damages.
As more and more directors face lawsuits, it has become vital to have enough Liability Insurance in Mundelein IL. Today, defending a legal claim can severely affect a company’s or an individual’s resources. Liability coverage cannot eliminate legal risk, but it can transfer some of that risk to an insurance company.
