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D&O or E&O - What to Know

D&O or E&O - What to Know

Management Liability…Professional liability…D&O?  What does it all mean? 

These are insurance coverages that are coming into play more than they’ve ever been due to the litigious business environment.  These coverages can be confusing so here’s a brief overview:

Management liability consists of Directors & Officers, also called D&O, for nonprofit, private or even public companies, along with Fiduciary liability & Employment practices liability.  

On the D&O side of business, the People who lead all organizations, whether public, private, financial institutions or non-profits are vulnerable to a multitude of D&O exposure. These exposures can include allegations of misrepresentation, wrongful termination, harassment, securities litigation, regulatory actions as well as other breaches of financial duties. D&O is such an important coverage but overlooked by so many. D&O officers can be held personally liable for claims, so it is crucial to have this coverage in place.

Professional liability, which is also known as Errors and Omissions, or E&O, consists of many lines of business.  These include Accountants, Design professionals, Lawyers & Real Estate Professionals.  On the Miscellaneous side of professional insurance, you have consultants, bookkeepers, inspection services, office & clerical services just to name a few.

As for Professional liability, allegations of professional negligence can seriously impact your business, a professional should always identify their potential claim exposure and take steps to manage the risks and mitigate any potential harm.

Bloss & Dillard has several markets for Professional & Management liability. Our different markets will offer different coverage highlights, but most companies offer some type of Risk management to help the insured navigate the waters and keep them updated on ways to keep their businesses out of the litigation.

Posted by Jamie Bowling, P&C on Nov 3, 2021