Directors Liability Insurance
Directors Liability Insurance
Company liability does not begin and end with the company product, whether that is technology, medical equipment, pet supplies or umbrella manufacturing. It does involve what is known as directors liability insurance, or as it is more commonly called, D&O liability insurance.
The company will want to be certain that decisions made by its directors and officers is covered against the possibility of negligence or business malfeasance of any sort. This type of insurance also covers what is known in the insurance industry as errors and omissions.
Of course, liability coverage should also encompass the premises of the business, whether a nonprofit social service agency or an umbrella maker. This covers any negligence on the part of the company to properly maintain the building in which they do business.
Medical insurance covers both the patient's needs in terms of decent medical care (health insurance policies) as well as malpractice insurance. This last is a type of insurance carried by physicians to protect themselves against crippling lawsuits in that unlikely event.
Three broad categories of insurance are general liability, product liability and professional liability.
General liability is basically coverage for your business - it covers personal injury, property damage and advertising claims. An example of this would be an automobile policy, which covers the policyholder against claims arising from an accident.
Product liability protects the company against a consumer being injured in the course of using their product. An example of this would be a tire recall that took place not too long ago; the company in that case took the intelligent course of recalling all tires that were manufactured within a certain time period and of certain models, and replacing them with other tires that were not defective. The company's insurance policy covered this loss as a cost of doing business.
Finally, professional liability would cover such claims as medical malpractice, directors liability insurance, and other types of general professional liability such as the actions of corporate officers. This also covers errors and omissions in the professional services offered by a company. An example of this might be the professional services offered by an attorney.
