Other Types of Casualty

Question 1

Directors and Officers (D & O)

Answer 1

Needed by directors and officers of corporations in case they get sued by stockholders.

Neither personal or business liability will cover it.

Claims-made basis that covers “wrongful act”

exclude bodily injury and damage to tangible property (covered under GL)

Question 2

Professional Liability

Answer 2

Errors and Omissions (Malpractice for medical)

claims made basis and most require consent of the insured before settling a claim.

does not cover fraudulent, dishonest or criminal acts

Question 3

Employment Practices Liability Insurance (EPLI)

Answer 3

form of personal injury liability insurance

covers claims made by employees. covers discrimination, wrongful termination. Personal Injury coverage

Question 4

Employee Benefits Liability Insurance (EBLI)

Answer 4

covers error or omission in regards to employee benefits. not covered by GL policy. Can be endorsed on GL

Question 5

Cyber Liability (Network Protection Insurance)

Answer 5

covers what might not be traditionally covered in GL policies relating to data, network, etc

Question 6

Surety and Fidelity Bonds (Suretyship)

Answer 6

means by which one person or entity (the surety) guarantees another entity (the obligee) that a third entity (the principal/obligor) will do or not do something

Question 7

Subrogation Rights

Answer 7

insurance company can’t go after insured to recover paid losses

Question 8

Surety Bond

Answer 8

guarantees that the principal will do something

ex: contract bond guarantees the fulfillment of contractual oblibations