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
- 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.