Aon’s Commercial Risk Solutions, Professional Services practice provides its clients with the most comprehensive and cost-effective Management
Liability ("ML") coverage available, no matter where in the world they do
Most professional partnerships now employ a more corporate, business-like approach to management. When a management or executive committee (or sometimes one individual) assumes ultimate responsibility for the firm's business operations, these decision-makers are exposed to many of the same liabilities faced by directors and officers of public corporations.
The Professional Services practice pioneered Management Liability insurance designed specifically for professional partnerships in 1999, thereby providing valuable financial protection to professional partnerships and their executive/management committee members.
We have developed and negotiated proprietary enhancing endorsements as well as manuscript policies that recognize the unique exposures that professional service firms face. Because each firm's insurance needs are unique, we also work with insurers to further refine individual policies to meet those specific client firm needs.
Our ML insurance policies generally have the following features:
- Choice of defense counsel
- Defense for criminal and regulatory/administrative prosecution and investigation
- Coverage for civil or arbitration proceedings against an insured
- Coverage for partnership/shareholder disputes
- Automatic coverage for created or acquired entities, subject to a headcount or asset threshold
- "Loss" is defined to include punitive and exemplary damage awards (where insurable)
- Entity coverage for the firm
- Severability of application and exclusions
- Choice of insured individuals
- Limited insured vs. insured exclusions
- Breach of contract coverage for individual insureds
- "Side A" coverage for non-indemnifiable loss subject to no retention
We can also combine the ML with Employment Practices Liability ("EPL") to create a cost-effective sphere of
"executive protection" for the management of the firm subject to a single retention and limit with one insurer.
In addition, the Professional Services practice has dedicated claims advocacy
counsel and claims collection specialists with over 25 years of claims-handling
experience. We maintain active relationships with insurance company senior management, product line managers, line underwriters, and claims professionals to ensure appropriate points of access for our clients and, most importantly, responsive claims resolution. As a result, the Professional Services practice can carefully craft a ML policy with a dedicated team that provides a professional service firm with the financial protection it requires, as well as the means to resolve management matters quickly and confidentially.