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HRAI member companies should ensure that they have sufficient insurance while being careful not to purchase coverage that they do not require. Professional Liability insurance should be an important consideration for HRAI members, also known as Errors & Omissions insurance, it covers exposures that are not covered by a General Liability policy. 

Here three examples of potential exposures for HRAI members:

  1. General Liability coverage can only triggered by Bodily Injury or Property damage, thus, 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 such as an engineer, any advice they provide would be excluded by the General Liability policy. 
  3. Errors that occur outside the scope of general liability that incur financial losses would require errors and omissions insurance.

Here are insurance solutions to each concern:

  1. Some insurers can offer an extension to the General Liability policy known as Customer Rework coverage that carries a sub limit of $100,000 to $250,000. This coverage will reimburse you for cost of correcting and completing the work that was incorrectly finished.
  2.  If you employ a professional, the best and most cost effective way to ensure the potential exposure is covered, is for the individual to purchase a Professional Liability policy that has been designed to cover the individual’s discipline, such as engineering.
  3.  For such exposure, insurance companies recommend a Professional Liability policy in addition to a General Liability policy.  Members should 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.