Management & Professional Liability Coverages Every Business Should Know

At Patriot Growth Insurance Services (Patriot), we help businesses of all sizes protect what they’ve built because risk today goes far beyond property damage or physical loss. Leadership decisions, professional services, employee relations, and benefit plan administration all carry exposure to potential claims that can disrupt operations and impact profitability.

That’s where management and professional liability coverages come in. These policies are designed to protect your organization, its leaders, and its employees from complex, high-stakes risks, so you can focus on running your business with confidence.

Directors & Officers (D&O) Liability

Protects corporate directors and officers from claims alleging negligence or wrongful acts in the course of their duties. These claims are often brought by shareholders, regulators, or other stakeholders. D&O coverage also typically extends to the organization itself for legal expenses related to defending such lawsuits.

Errors & Omissions (E&O) Liability

Also known as professional liability insurance, E&O coverage safeguards your business from claims of mistakes, errors, or negligence in the delivery of professional services. It’s especially important for professionals such as consultants, financial advisors, real estate agents, architects, and insurance brokers – anyone whose expertise forms the core of their client relationships.

Employment Practices Liability (EPL)

EPL insurance helps protect employers from claims involving discrimination, harassment, wrongful termination, or other employment-related issues. With today’s heightened awareness of workplace culture and compliance, this coverage is essential for organizations of all sizes.

Fiduciary Liability

Protects administrators of employee benefit plans against claims alleging breach of fiduciary duty or mismanagement. Unlike ERISA or fidelity bonds, fiduciary liability policies cover the liability exposures associated with plan administration, such as errors or omissions in managing employee benefit programs.

Employee Benefits Liability (EBL)

EBL coverage protects employers against claims stemming from administrative errors in benefit plan management. Examples include failing to enroll an employee in a plan, providing incorrect information, or making an oversight that impacts an employee’s coverage.

ERISA Bonds

Required under the Employee Retirement Income Security Act (ERISA), these fidelity bonds protect employee benefit plans against losses caused by dishonest or fraudulent acts committed by plan administrators, employees, or trustees. Employers must maintain coverage equal to at least 10% of plan assets to stay compliant.

General Liability (GL)

A foundational policy for every business, general liability insurance protects against third-party claims for bodily injury, property damage, or personal and advertising injury. However, it typically excludes professional liability, employment practices, fiduciary responsibilities, and wrongful acts by directors or officers, making the additional coverages above an essential complement of your insurance program.

Protecting Leaders, Employees, and the Future of Your Business

At Patriot, we believe that the best risk management strategy starts with proactive protection. Our consultants work closely with businesses nationwide to design management and professional liability programs that protect leadership, strengthen compliance, and safeguard the organization’s reputation.

Whether you’re a growing business or an established enterprise, Patriot provides the expertise, scale, and local partnership to help you navigate evolving risks with confidence.

Learn more about how Patriot can help protect your business from management and professional liability exposures.