Professional liability (E&O) and D&O cover wrongful acts of professionals and corporate directors. Carriers, MGAs, and TPAs writing E&O and D&O need a platform that handles claims-made triggers, retroactive dates, and tower management at scale.
Professional Liability — commonly called Errors & Omissions (E&O) — covers a professional's legal liability for negligent acts, errors, or omissions in the rendering of professional services. The companion Directors & Officers (D&O) liability covers wrongful acts by corporate directors and officers in their capacity as directors and officers.
This page is a line-of-business reference for E&O and D&O carriers, MGAs, TPAs, and program administrators evaluating a policy administration platform for claims-made management-liability programs.
E&O and D&O respond to a wrongful act — an actual or alleged negligent act, error, or omission — that gives rise to a claim made against the insured during the policy period (or extended-reporting period).
The platform has to model retroactive date, prior-acts coverage, extended-reporting period, related-claim language, and the interplay between claim notice and coverage trigger.
D&O is structured in three sides: Side A protects directors and officers when the company cannot indemnify them; Side B reimburses the company for indemnification it pays; Side C (entity coverage) covers the company itself for securities claims.
Mercury's product configuration supports A-only, ABC, and dedicated Side-A excess products with their own retentions, limits, and forms.
Large E&O and D&O accounts are written on towers of layered excess policies, each follow form over the primary, with carrier-specific differences in coverage and order-of-payments. Tower management means tracking primary, first excess, second excess, etc., with their own retentions and limits.
Mercury supports configurable excess and follow-form policies, primary-policy reference, and aggregate-erosion tracking through claims administration.
Claims-made claims handling is driven by notification: missed notice can void coverage. The platform has to capture claim, circumstance, and potential claim notices with timestamps, route them to coverage counsel, and track reservation-of-rights letters.
Mercury's claims administration supports claim, circumstance, and potential-claim intake; coverage-position document workflow; and panel-counsel rosters with rate enforcement.
Does Mercury support claims-made E&O and D&O on the same platform?
Yes. Mercury's configurable forms and underwriting rules support claims-made E&O and D&O products with retroactive-date validation and ERP endorsements on the same policy administration tenant.
Can Mercury manage excess and follow-form towers in D&O?
Yes. Mercury supports configurable excess and follow-form policies, primary-policy reference, and aggregate-erosion tracking through claims administration.
Does Mercury distinguish claim, circumstance, and potential-claim notices in claims intake?
Yes. Mercury's claims administration supports configurable intake categories for claim, circumstance, and potential-claim notices, with timestamped notice-tracking and coverage-position workflow.
