As the principal of a design firm, your clients rely on you and your staff to deliver a complete set of buildable plans and specifications that fully detail your designs. The smallest mistake can have huge consequences for your clients. As a responsible manager, you understand the importance and value of having professional liability insurance to protect your business from errors and omissions or E&O claims. What coverage do you have for damages that result from your management decisions?
What is Management Liability Insurance?
Management liability insurance, also known as Directors and Officers or D&O insurance, protects you and other firm leads from personal liability for claims made as a result of management decisions and actions. Potential claims of this type include the following:
- Acts of negligence
- Disclosure of privileged information
- Mismanagement of funds
- Investment decisions
- Employment practices
- Unfair business practices
- Conflicts of interest
This is a different type of coverage from E&O insurance, but just as important when it comes to protecting your business.
What’s the Difference Between Professional Liability and Management Liability?
When comparing d & o and e & o insurance, recognize that the former refers to your company’s principals while the latter involves any of your employees as well as protection of the business itself. Both protections are necessary for the type of work you do and it’s important to choose a provider that offers these specific coverage tailored to your business.