Some contractual requirements are nearly impossible to fulfill, and others are in conflict with each other. What’s an agent to do?
Agents are frequently provided insureds’ contract requirements in order to determine insurance needed. But contract requirements can go well beyond limits and Additional Insured status. Does an agent owe a duty to their insured to provide the coverage required by the contract? Or even more frightening — does the agent owe a duty to the insured’s client?
Agents frequently insure entities on whose boards they serve. There are inherent conflicts and dangers in this business-building approach. Exercise Caution!
D&O policies are not intended to cover professional services, even though the entity and the employees are insured for their wrongful acts.
The gap between your insured’s pro bono or bartered services and the coverage provided by their professional liability policy can be closed.