USA – Professional Liability

End-to-End Solutions for your Clients

Allied World provides clients with a full suite of integrated end-to-end solutions designed to mitigate cyber risk exposures. Our Cyber insurance offers robust coverage including first and third party coverages, with Professional and Technology Errors and Omissions optional. As a market leader in Cyber, Allied World provides clients with the ability to tailor coverage and pre-breach risk management services for their specific needs.

Should a breach occur, we provide Incident Response experts who can assist impacted individuals monitor their credit and help protect them from fraud. We offer a dynamic and responsive solution to your clients’ data privacy and cyber concerns.

Coverage highlights include

• Third Party Liability Coverage includes Optional Professional Services Liability and Technology Services Liability coverage
• First party coverage on a discovery basis
• Incident Response is available in addition to the policy aggregate limit, subject to underwriting review, and includes:
  • First Dollar Breach Consultation
  • Data Forensics
  • Notification and Credit Monitoring
  • Public Relations
• Claims made for wrongful acts discovered during the policy period
• Business Interruption and Expense coverage from the time of disruption once the waiting period is met
• Supplemental Expense coverage
• Up to $25M aggregate limit and no minimum premium
• Available on a Primary and Excess basis
  

  Pre-breach Risk Management services

  Allied World // FrameWRX^SM is our award-winning cyber risk management solution that helps clients enhance their cyber security readiness and incident response capabilities. Clients receive proactive guidance, ongoing support, and relevant industry offerings at no additional cost as part of their Cyber policy. What’s more, we work to continually grow and evolve our FrameWRX platform to help our clients be better positioned to withstand new and malicious cyber threats.

  To learn more about our FrameWRX services, please review the info sheet in our Resources box, or visit our FrameWRX page on this website.

  Breach Response

  Should an event occur, policyholders benefit from Allied World’s dedicated Claims team, with experts who work closely and in coordination with our carefully selected Incident Response vendors. Clients receive immediate, proactive assistance in navigating through privacy laws, regulatory response, media communications, notification letter content, vendor selection and other issues integral to incident evaluation and response.

Allied World’s professional liability coverage for insurance agents and brokers is ideal for those insureds with annual gross written premium (GWP) of $10 million or more. With expert underwriting capabilities and the capacity to swiftly adapt to a changing marketplace, Allied World ensures that our policyholders’ livelihood is protected from every angle.

Eligible risks

• Mid-sized to large retailers, including specialists
• Managing general agents (MGAs) and underwriters (MGUs)
• Program administrators (PAs)
• Wholesale agents/brokers
• Surplus lines brokers
• Hybrid organizations (e.g., TPA operations, captive management operations)
• Agents/brokers with claims history

Product features

• Defense expenses available outside of the limit of liability
• No exclusions for carrier insolvency
• Full limits liability coverage for professional services and privacy and network security wrongful acts
• First Party coverage: provides up to $10,000 at no additional charge. Insureds can purchase additional limits up to $1M. Coverage includes:
  • Regulatory Fines & Penalties
  • Public Relations Expenses
  • Network Extortion Coverage
  • Data Forensic Expenses
  • International Notification Costs

• First Party Notification coverage: additional limit for Notification & Credit Monitoring Costs provided for up to 2,500 individuals at no additional charge. Optional additional limit available for up to 75,000 individuals.

Allied World’s ‘PRO’ product addresses the unique needs of insurance companies and other risk transfer organizations by providing E&O, D&O, EPL and Privacy and Network Security protection within a single form. PRO targets small-to-mid-sized companies with annual GWP of up to $2 billion. Covered organizations include mono/multi-line, public/private insurance companies or risk-transfer organizations, including captives, risk retention groups, reciprocals, exchanges and mutual companies.

Product features

• Flexible and comprehensive array of standalone options: E&O, D&O, EPL and Privacy and Network Security protection. Limits can be shared or separated.
• Privacy and Network Security coverage option available: insureds can purchase up to $1M in additional limits and notification/monitoring costs for up to 75,000 individuals without having to buy a separate policy.
• Coverage for extra-contractual obligations (ECO), separate retention applies
• Coverage for Subsidiary Operations including claims administrators, captive managers and managing general agents/ underwriters
• Full limits liability coverage for professional services and privacy and network security wrongful acts
• Risk management support for Privacy and Employment Practices policyholders

Allied World is a long standing market with the expertise needed to understand and underwrite each law firm on its own merits. We offer both an admitted (Allied World LPL Assure^SM) and surplus lines (Allied World LPL Assure^SM E&S) product, so we can service firms whether they fit the box of standard, admitted markets or not. Law firms can transition seamlessly between the two products without losing continuity. Both products feature our broad coverage form, value-added services and financial strength.

Two Products: Same Exceptional Coverage, Same Exceptional Service.  Firms that don’t fit our admitted LPL Assure product due to practice areas, claims history or excess placements are considered for our LPL Assure E&S surplus lines product. Both product forms are essentially identical, allowing clients the same broad coverage features, regardless of their placement.

Product features

• We insure law firms with 3-100 attorneys
• Unlimited Extended Reporting Period (ERP)
• Free Retirement ERP after 3 years of continuous coverage
• Provisions specifically addressing Privacy and Network Security Wrongful Acts with coverage up to the full limit for no additional premium
• $25,000 Supplemental Privacy Coverage for Crisis Management, Notification & Credit Monitoring, and Data Forensics Expenses
• 50/50 Consent to Settle Provision
• Disciplinary Proceedings, Lost Earnings and Subpoena Coverage
• Coverage for Predecessor Firms, Independent Contractors and Of Counsel
• Mutual Selection of Defense Available

Errors & Omissions coverage for well over 200 professional classes. With increased scrutiny from both insureds and regulators, Allied World’s Specified Profession Professional Liability (SPPL) all-risk form removes the limitations of a typical named-perils policy by providing coverage for all usual and customary services performed within a profession. Each policyholder is covered across the entire spectrum of his or her professional liability, not merely for the particular services listed as “named perils.” Also, a professional whose practice spans two or more classes need only apply for a single policy (with a single premium) that will apply to all of his or her professional exposure areas.

Product features

• All-risk policy, offering coverage for all usual and customary services performed within the scheduled profession – standard endorsements to remove non-class restrictions/coverage enhancements when applicable
• Defense expenses outside the limits of errors and omissions liability available for the majority of classes
• Contingent BI/PD included
• Coverage for subsidiaries, employees, and independent contractors included
• Supplemental payments for disciplinary proceedings covered up to $5,000 (outside of the limit)
• Claims-made and reported form
• Limits: available from $250,000 to $10M

Allied World’s Healthcare Management Liability Group also offers a separate Health Care Consultants Professional Liability Policy that includes contingent bodily injury coverage specific to the exposures and needs of this diverse group.

Tax Liability Insurance is a valuable tool for managing tax risks. It provides companies with financial protection for uncertain tax liabilities (related to historical tax positions — or uncertain positions arising as a result of a merger or acquisition) against a future challenge by a tax authority by transferring risk to an insurance provider.

Our tax liability team possesses the expertise to develop tax liability insurance policies with coverages for estimated tax as well as any interest, penalties and defense costs. We are also able to offer coverage for a ‘gross-up’ for the income taxes arising from insurance proceeds received under a policy.

Tax Credit Recapture

Our tax credit recapture policy can backstop or replace a sponsor’s tax indemnity to a tax equity investor by providing protection where an investment may be outside the core business of the tax equity investor or an asset-backed securitization is sought. We consider contingent exposures related to a tax authority regarding the investment structure, the qualified basis for expenses incurred and recapture of the tax credits.

Tax Opinion / Liability

We consider contingent exposures related to the tax treatment of tax return positions taken in the ordinary course of business or specific tax issues in connection with broader merger or acquisition transactions (historical or contemplated).