Important Coverage Decisions and MPL Insurance

Insurance needs vary, even among professionals, and it’s important to get the right coverage that fits individual professions. Certain people, and we’re talking about those clients who charge a fee for the services they provide, can benefit from the acquisition of miscellaneous professional liability (MPL) insurance.

This specific type of coverage, which offers protection for the errors and omissions committed by professional service providers, is a safeguard against claims of neglect or wrongdoing. It’s vital that you help your insureds differentiate between this policy and general liability (GL) policies, since MPL insurance covers both the professional services they render, as well as the actual business entity itself.

The list of businesses in need of coverage is extensive

As an agent you understand that everyone from travel agents to architects needs to have miscellaneous professional liability coverage. But you may need to convince certain clients of the benefits associated with having this policy. For instance, those in the dog grooming business may have a hard time believing they are at risk by not purchasing coverage, but nothing could be further from the truth.

There are more than 350 hazard classes currently offered under the MPL insurance umbrella. As any agent knows, it helps to focus marketing and sales efforts on certain professions during certain times of the year. That is why it’s suggested that you segment your activities monthly by specific classes. For example, accountants and tax preparers are best approached in March in time for tax season.

The best approach is to explain to them that what they are able to deliver, in terms of their services, and what their clients’ may have come to expect, may not always be in line with one another. If expectations are extremely high, and they fail to meet those expectations, this is where the issues generally begin.

The situation then gets exacerbated when a real mistake or error occurs, and if their customer feels, or can prove that it resulted in some type of loss, financial or otherwise, your client could become entangled in a lawsuit.

The exposures exist, and the risks are all too real. Speak to your clients about MPL insurance to protect them and their business from issues stemming from the professional advice and services they provide.

MPL Insurance for a Vast Array of Business Models

Professional liability insurance is a concern for many different business models. This is by no means a one-size-fits-all type of policy. For that reason, miscellaneous professional liability (MPL insurance) policies were created so that brokers could offer these services to the many different industries they provide quotes and policies for.

Doctors, lawyers, architects, and the like need customized errors and omissions (E&O) solutions tailored to each of their specific needs. This requires a vast knowledge of the different markets involved, and a unique voice that enables these specialists to offer brokers and insureds the best solutions for all of their professional liability needs.

Whether the need is for coverage for defense costs in cases alleging fraud, dishonesty, or intentional acts, or punitive damage awards for cases that were settled by a judge, the expenses related to MPL can be quite large and the need for insurance is all too plain.

Who needs MPL coverage?

Honestly, the number and types of businesses that may benefit from this type of policy runs quite long. Bookkeepers, claims adjusters, tax preparers, even travel agents have risks and exposures related to the services they offer. Freight forwarders, property managers, insurance consultants and even those providing educational services are at risk. If your client is a hotel or facility manager, runs an employment firm, does scientific research, or runs a museum they all face exposures within their field and could benefit from having MPL insurance in place.

For example, let’s say that your client is in advertising and they create an ad campaign that infringes on another company’s similar advertising model. Their customer could face a potentially damaging lawsuit which would likely lead to the client being sued. Without a professional liability policy, they could end up losing their business, or at the very least, their reputation could be so damaged that future business could be extremely hard to come by.

It’s pretty clear that all of these professionals have one thing in common; they need comprehensive coverage that will safeguard them from lawsuits resulting from issues like personal injury, or discrimination, and that can also possibly lead to an early claim resolution. Have your clients purchase MPL insurance long before they need it, and everyone wins.

Liability Concerns and MPL Insurance

Professional liability coverage protects many different entities and businesses against liability claims and the cost of defense related to an error, omission or negligence in the performance of professionals services. Whether you work as a mortgage broker, a travel agent, or in printing or publishing (to name just a few professions), whenever you give advice to a client and they in turn, allege that your suggestions resulted in some financial loss to their company, you can be sued in court.

Miscellaneous Professional Liability (MPL) insurance is available for a wide array of professionals with exposures to these types of lawsuits. Running any type of business, by nature, is a risky endeavor, and these days, quality professional liability insurance is a must have coverage, especially, for example, for Certified Public Accountants (CPAs). Liability insurance helps cover you, your business, and also your employees from lawsuits, and offers insurance for many of the associated defense costs.

Did you know that New York State mandates minimum levels of professional liability for some professions? Professional service firms of all kinds, and this includes accounting, lobbyists, trustees, multimedia firms, insurance, process servers, and information technology services, can all benefit greatly by insuring themselves.

Even manufacturing and distribution companies should opt for this type of protection from outsourcing, online commerce and concerns about intellectual property. These risks are all too real and quite complex and extensive. You will likely need an expert who can tailor a comprehensive and cost-effective professional liability policy suitable for your risks and that will also offer consultation to you for the long haul.

Many companies are adding coverage for cyber exposure

Some professional liability policies also provide coverage for privacy violations and breaches of computer security. The threat of cyber terrorism can decimate a company, often crippling them for weeks on end while they try to restore their systems and prevent another attack from occurring. Speak to an insurance professional about adding cyber to an MPL policy.

An errors and omissions (E&O) policy, which falls under MPL insurance, is designed to provide comprehensive coverage for a wide range of professional service firms. Don’t go without this policy if your profession opens you up to certain risks. The right insurance professional will provide you with customized E&O solutions tailored to your specific needs.