What is MLIS?
Management Liability Insurance Specialist
Whether it's the result of an intentional malicious action or an honest mistake, it is possible that every business will at some point have to deal with a lawsuit as a result of its business actions.
In order to prevent a claim from causing devastating financial and reputational failure, every business should have the right insurance coverage. While there are two main policies that cover claims of negligence or improper conduct leading to losses, Directors & Officers (D&O) and Errors & Omissions (E&O) insurancethey are absolutely not interchangeable.
D&O insurance specifically provides protection to directors, officers, or other company executives. If the allegations against the company can be traced back to actions, decisions or failure to act on the part of directors, officers, or other members of the upper management, then D&O insurance would be necessary.
Errors & omissions insurance, much like D&O, provides coverage for claims of malpractice, negligence or other improper operations leading to losses for clients but is concerned with the product or service that the company offers. This coverage extends to all other types of employees, and covers losses that are not covered under traditional liability insurance. In addition to salaried and hourly employees, subcontractors working on the business's behalf would also be covered.