Miscellaneous
Professional Liability (MPLI), commonly called
Professional Errors and Omissions Liability
coverage, is purchased by companies to protect
against litigation resulting from claims alleging
negligence or inadequacy in the performance
of their professional services.
Any individual, partnership, or corporation
providing professional services can be exposed
to liability as a result of negligence in providing
these services. MPLI coverage also protects
the mistakes of employees and independent contractors
the firm may hire.
This coverage is not included in a Commercial
General Liability policy, which primarily responds
to property damage and bodily injury claims.
There
are many businesses that provide professional
services to others and who would be considered
for Miscellaneous Professional Liability.
These include, but are not limited to:
| • |
Media:
Broadcasters, Advertisers, Music/Entertainment,
TV/Film producers |
| • |
Management
Consultants |
| • |
E-Commerce |
| • |
Technology/Software
Providers or Developers |
| • |
Advertising
and Publishing Errors and Omissions |
| • |
Property
Managers |
Sample
MPLI claims include:
| • |
Breach
of Contract – A leased
employee of a maintenance service company
falls into a holding tank and dies while
working for a customer. The employee’s
estate sues the customer for damages.
The customer sues the maintenance service
company, arguing that the service company
breached it agreement to procure the proper
coverages, and as a result, should indemnify
them for any damages attributable to the
maintenance employee’s death. |
| • |
Real
Estate Agent – A builder
purchases a piece of land to develop with
residential property. A real estate agent
is representing the seller in the transaction.
The builder discovers the land cannot
be developed due to soil contamination
after the sale is closed. The builder
sues the agent and the seller for failing
to disclose problems with the soil.
|
| • |
Property
Manager – A tenant is leasing
property in a shopping center, and the
monthly rent includes charges for the
maintenance of common areas. The tenant
asserts that the rent is being improperly
calculated since the property manager
is charging to cover areas that are not
actually common areas. The tenant is suing
for a breach of contract against the property
manager. |
There are many more scenarios and business activities
that would be covered with MPLI coverage and
would be excluded under a standard policy.
Please contact insuretrust
for assistance with your particular MPLI needs
and questions. |
