Business Risk Partners Launches Lloyd’s-Backed Miscellaneous E&O Form

August 19, 2011

Business Risk Partners (BRP) now offers a new standard professional liability (E&O) policy form for hundreds of service professions. Policies will be underwritten by Lloyd’s of London, the company’s partner for non-admitted E&O coverages in miscellaneous professional liability (MPL) as well as specialty programs for home inspectors, tech firms, and architects & engineers.

Many previous endorsements are now built-in to every standard policy with newer enhancements customized to the profession and insured’s specific needs. For example, the new form provides built-in coverage for professional services transacted over the internet, as well as or for third party claims related to the breach or loss of private information. It also provides a deductible credit for mediated claims.

“E&O coverage has evolved greatly since we first launched BRP in 2000 targeting brokers serving small to medium size service businesses,” says Lisa Doherty, BRP’s co-founder and president.

One sign of the times: cyberattacks on businesses have become commonplace. Nearly 75% of small and midsized companies experienced a cyberattack in the past year, and 30% of the attacks were “somewhat /extremely effective” according to a 2010 Symantec Corporation survey of over 2,000 companies worldwide. This disturbing trend has left companies more exposed than ever to potential liabilities associated with the breach of confidential client and business information.

BRP’s new form also provides a deductible credit of up to 50 percent if the claim is resolved as a result of mediation. In states like Florida mediation has been found to be effective in resolving approximately 75 percent of all cases before they get to court.

There is also a 50 percent reduction in the deductible obligation of the insured.

Businesses which fall under BRP’s designated “miscellaneous” category cover an array of professions from management consultants to travel agents, freight forwarders to medical billers, staffing and recruitment specialists to media, marketing and real estate professionals.

The new standard MPL policy form includes the following:

  • Administrative Proceeding Coverage: Provides defense for administrative proceedings or investigations of professional misconduct.
  • Subpoena Compliance Coverage: Provides coverage in the event an insured receives a subpoena without being party to the litigation.
  • Witness and Attendance Expenses Coverage: Reimbursement for expenses incurred by an insured at our request for cooperation in the defense of a claim.
  • Deductible Credit for Mediated Claims: Deductible obligation will be reduced if a claim is resolved as a result of mediation.
  • Spousal Extension: Extends coverage to the lawful spouse of an insured for claims the spouse becomes legally obligated to pay.
  • Personal Injury Coverage: Protects againstlibel/slander and more.
  • Confidentiality Coverage: Liability coverage in the event of a breach of your clients’ private information.
  • E-professional Services Coverage: Provides coverage for claims resulting from covered professional services performed via the internet.
  • No Minimum Earned Premium Requirement: Eliminates the 25 percent minimum earned.
  • Claims: Definition ties to demand for money or professional services.
  • Extended Reporting Period: Bi-lateral Extended Reporting Period built into the form.

Policies are immediately available nationwide on a non-admitted basis to firms with revenues up to $50 million. Capacity of up to three million dollars in limit is available.

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