SPECIAL REPORT
5-STAR AWARDS: PROFESSIONAL LIABILITY AND D&O
PROTECTING THE PROFESSIONALS WHETHER IT’S covering doctors who are running emergency room departments or lawyers representing innocent victims, professional liability insurance (also known as errors & omissions) is the oil that greases the wheels of professional operations in the US. Its close cousin, directors & officers insurance, helps shield company leaders from personal losses in the face of a lawsuit. Throughout 2021, professional liability has
“We expect average rate increases [in D&O] to continue decelerating and settling around average singledigit increases next year” Justin Psaki, Arch Insurance
WHAT’S IMPORTANT TO BROKERS WHEN CHOOSING A PROFESSIONAL LIABILITY OR D&O POLICY?
Coverage
98% Underwriting expertise
95% Claims payment/processing
90% Access to risk mitigation/risk evaluation partners
63%
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been experiencing a hard market. Due partly to COVID-19 work conditions, coverage for cyber, telemedicine and employment practices liability (EPL) remains challenging. In addition, Amwins’ latest report on professional lines warned that “our post-pandemic environment may unleash a backlog of professional liability claims and coverage issues that the industry needs to prepare for.” “EPL has seen rates increase the last two years and remain challenging for insureds in California, New York and Illinois, as well as certain industries, such as restaurants, franchisors and real estate,” says Peter R. Taffae, managing director and CEO of Executive Perils, a 2021 5-Star Professional Liability and D&O winner. Dan Mogelnicki, senior vice president of Professional Lines at fellow 5-Star Award winner Tokio Marine HCC – Cyber & Professional Lines Group, says his company is “seeing changes in the professional lines sector, mainly related to insurtechs. Everyone is watching to see where things are headed, but at Tokio Marine HCC –
