Professional Liability for Consultants

Nuts & Bolts: National Union Fire Insurance Co., a member company of AIG, launched a new product designed to address the professional liability exposures of consultants in a variety of industries. The consultants preferred professional liability insurance policy, “Consultants Preferred,” insures consultants for claims alleging negligence arising from consulting services. Coverage can be extended to cover the economic losses sustained by others as a result of the insured’s alleged negligence. The policy includes a broad definition of consulting services and offers insureds enhanced protection against claims alleging errors and omissions. In addition to providing coverage for legal defense and damage awards, the policy offers coverage for computer attacks arising from the provision of consulting services. Subject to a sublimit of liability, the policy also permits the insured to retain a public relations firm for specific crisis events, such as bankruptcy, mass tort, management crisis, regulatory crisis or other crisis events.

Dollars: There is a minimum retention of $5,000 and a minimum premium of $3,000 per million. The policy has a maximum limit of $25 million.

Carrier: American International Specialty Lines Insurance Co., rated “AAA / A++,” nonadmitted.

States Available: All.

Contact: James Sheldon, james.sheldon@ aig.com.