The following is a digest of an article written for AgentandBroker.com by Dennis Donner.
Employee lawsuits are becoming more prevalent and more costly in recent years. As a result, more and more businesses are showing an increased interest in insuring against such employee lawsuit risks by purchasing Directors & Officers coverage and Employment Practices Liability Insurance (EPLI).
(Editor's Note: Within the medical industry, most professional liability emphasis is on Medical Malpractice. Most doctors only give a cursory glance to the professional liability relating to the "running of their business".)
In most litigious areas of the country, a drive across town will highlight billboard after billboard advertising the services of plaintiff attorneys not to mention television, radio and print advertising. For many attorneys, employment litigation has become a financial staple to their practice.
Typical clients for D&O and EPLI are businesses with 25 to 100 employees. They have small boards of directors or ownership groups (2 or 3 partners with no outside directors).
Most of these businesses purchase management liability policies that combine D&O and EPLI, along with some fiduciary liability. Such bundling of coverages usually represents savings in premium.
Not all insurance agents are adequately prepared to discuss such liability coverages, as they require an in-depth knowledge of the industry and experience in professional management liability coverages.
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