Traditionally, partners and officers of professional firms made all of the firm's business decisions as a collective group.
Today, the demands of both running the business and providing ever-broadening professional services to clients often require
that the firm delegate management responsibility among dedicated committees. Now smaller groups of partners or shareholders
typically are making the decisions. This corporate management structure exposes the partners and shareholders to many of the
same liability risks faced by the directors and officers of corporate entities. Like corporate entities, professional firms
-- including law firms -- require specialized insurance for the decisions they make in the day-to-day management of their
business.
Chubb's Management Liability Insurance policy includes these important policy features:
- Coverage for claims brought by partners not involved in the firm's management -- an internal exposure that traditional directors
and officers (D&O) and errors and omissions (E&O) liability insurance policies do not generally provide.
- Coverage for claims of mismanagement or negligence in the day-to-day business decisions made by the firm's management committee
or executive officers.
- Coverage for partnership agreement and compensation disputes.
- Business tort coverage, such as for claims for interference with contractual relations.
- Punitive damages coverage (where insurable by law).
- Defense sublimit of 10% for claims seeking enforcement of a contract.
- Spousal coverage.
- Coverage for subsidiaries.
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