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Most HRAI member companies want be sure they have sufficient insurance but do not want to purchase anything they do not need. So what is Professional Liability Insurance and why would HRAI members require the coverage? Professional Liability is also known as Errors & Omissions. Simply put it covers exposures that are not covered by a General Liability policy. 

HUB International, an HRAI Membership Advantage Partner, recommends the following tips when looking at insurance coverage.

Here are three examples of potential exposures for HRAI members:

  1. General Liability coverage can only be triggered by Bodily Injury or Property Damage.  Therefore there is no coverage for the expense of removing and replacing your work that was incorrectly completed.
  2. All general liability policies have Professional Liability exclusion. Consequently if you employ a professional like an engineer, any advice they provide would be excluded by the General Liability policy. 
  3. Financial losses often do not involve an incident, therefore your customers lost revenue, due to delays your error caused, is not covered by the General Liability policy.

Here are insurance solutions to each concern:

  1. Some insurers can offer an extension to the General Liability policy that is known as Customer Rework coverage, with a sub limit of $100,000 to $250,000. This coverage will reimburse you for cost of correcting the completing the work that was incorrectly finished.
  2. If you employ a professional, the best and most cost effective way to ensure this exposure is for the individual to purchase a Professional Liability policy that has been designed to cover the individual’s discipline.
  3. For this exposure HUB recommends a Professional Liability policy in addition to a General Liability. Be sure to confirm if a claim includes bodily injury and property damage along with insuring that insured service is broad enough to describe all of your operations.  

For more information on any of the above, feel free to reach out to HRAI’s Membership Advantage Program Partner – HUB International at 416-597-4624 or hrai.program@hubinternational.com. To find out more about HUB please visit www.hubinternational.com.  Be sure to mention you are a HRAI member company.