XL Catlin has added two optional coverages to its professional liability insurance for architects, engineers and other design businesses in Canada: Employment Practices Liability (EPL) Insurance and Cyber Insurance coverage.
The optional EPL coverage is designed to help architects, engineers and other design businesses address potential claims for wrongful employment practices. According to XL Catlin claims data, EPL lawsuits against design professionals are on the rise and the average severity of these continues to increase. Settlements are often in the $250,000 to $300,000 range, even for single-employee claims against small employers.
Similarly, Cyber attacks are becoming more common and can create enormous financial and reputational consequences for a design firm’s practice. According to Doug Strong, Chief Underwriting Officer for XL Catlin’s Design Professional insurance business, “From laptops and smartphones to interfacing with complex integrated design software, design professionals rely on technology for their day-to-day project management and client relationship activities. With cyber exposures growing exponentially, one cyber incident can significantly compromise all that they and their firms have worked hard to build.”
Wilma Schreuders, Regional Leader for XL Catlin, Canada Design Professional insurance added, “These optional coverages are tailored to stave off the financial and reputation consequences of two of the fastest growing risks for design professionals. We’ve paired up our expertise in design professional, employment and cyber, to deliver two specialized coverage options to help our clients address today’s new and emerging business exposures.”
Available under XL Catlin’s Design Professional liability policy form, XL Catlin’s Employment Practices Liability for Design Professionals coverage, with dedicated EPL limits separate from design professional liability limits, offers:
• Broad definition of Insured Person
• Broad definition of Employment Practice Wrongful Act
• Definition of Damages includes back and front pay, pre- and post-judgment interest, multiplied damages and attorney fees
• Defense for written employee contract claims
• Third-party coverage for claims from non-employees
XL Catlin’s Cyber Suite for Design Professionals coverage, with dedicated policy cyber limits, offers design professional firms access to a dedicated 24/7 data breach hotline and other cyber management resources available on XL Catlin’s Design Professional’s Learning Management System. It also includes:
• Privacy & Network Security Liability insurance protection to address a variety of scenarios, including: Loss of or failure to protect Personal Information and Confidential Business Information such as proprietary drawings, designs, customer requirements and specifications; violation of any privacy or data breach reporting laws/regulations; wrongful acts of rogue employees; and transmission of malware to third-parties.
• Data Breach response coverage to address associated costs such as: Voluntary notification to breach victims; forensic investigations; extortion incident costs and payments; providing credit and identity protection and restoration services.
• Supplementary Payments coverage to address costs associated with: Crisis event and administrative and regulatory expenses.
XL Catlin’s Design Professional business provides professional liability insurance for architects, engineers and design consultants. Coverage is available for firms of all sizes and disciplines. XL Catlin’s design professional coverage is accompanied by a variety of loss prevention assistance and risk management assistance including continuing education courses and access to XL Catlin’s Contract eGuide to help firms incorporate strong contract language.
About XL Catlin Insurance Operations
XL Catlin insurance companies offer property, casualty, professional, financial lines and specialty insurance products globally. Businesses that are moving the world forward choose XL Catlin as their partner. To learn more, visit xlcatlin.com.
About XL Catlin
XL Catlin is the global brand used by XL Group Ltd’s (NYSE:XL) insurance and reinsurance companies which provide property, casualty, professional and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. Clients look to XL Catlin for answers to their most complex risks and to help move their world forward. To learn more, visit xlcatlin.com.