Errors & omissions (E&O) insurance is designed to protect a company in the event of a lawsuit stemming from their normal business activities. Also known as professional liability insurance, E&O coverage is especially important in the highly litigious collections industry. Many debtors file lawsuits against collection agencies under the federal Fair Debt Collection Practices Act (FDCPA), or other similar state laws. Suits filed under the Fair Credit Reporting Act (FCRA) and the Telephone Consumer Protection Act (TCPA) are also on the rise.
FDCPA lawsuits are rising every year. Even frivolous claims cost money to defend, and an E&O policy is a critical safety net for your business. Contact us for a free quote or policy review to make sure you have solid coverage at a fair price.
Data breaches are increasing at an alarming rate, and purchasing a cyber liability policy is the best way to make sure your business is covered against this growing threat. The scope of a data security incident can range from a stolen laptop to a massive breach by overseas hackers, and anything in between.
Most states have passed laws requiring notification of consumers whose personal information has been compromised in the event of a security breach. The costs associated with such notification – sending certified mail, changing account numbers, and subscribing to credit monitoring services – can be staggering at $30 or more per consumer.
Any business that stores personal information on consumers is a potential target, including the collections industry. It is important to note that errors & omissions policies typically do not cover claims related to data breaches. Some policies offer a network security coverage endorsement for an additional fee, but such endorsements do not cover the costs of notifying consumers about the breach.
Commercial crime insurance is also called employee dishonesty insurance, and covers a company against theft of money or other property by an employee. Third party coverage to protect a client may be added to the policy, as well as coverage for various types of forgery and fraud. Coverage for the management of retirement plan assets can also be endorsed onto the policy for ERISA compliance.
Employment practices liability covers a company against various types of lawsuits from employees and former employees. These types of suits can include harassment, discrimination and wrongful termination. Directors & Officers (D&O) insurance covers company officers for lawsuits from investors and shareholders. D&O coverage is often packaged with employment practices liability. Fiduciary liability can also be packaged in this group of policies.
