What is the difference between Vicarious Liability Coverage and Corporate Coverage?
• Vicarious Liability covers the corporation ONLY with respect to the individual named insured agent’s liability. Corporate coverage is pure entity coverage, insuring the corporation for its liabilities. Subject to certain conditions, entities are considered to have a separate legal status and therefore can be sued. The firm’s liability stems from the actions of its employees. As such, an entity may purchase insurance coverage to protect itself from that liability. We refer to this entity coverage as “Corporate E&O” coverage. Here are some examples of what the agent’s policy will not cover on behalf of a Corporation: A suit against the corporation for an act, error, or omission the agent committed that is not covered under the agent’s personal policy (ie. non-covered product) A suit against the corporation for an act, error, or omission committed by a non insured employee (unless considered an unlicensed assistant to the individually covered agent) A suit against the corporation for ac
