Read your E&O policy: Twin City Fire v. SHRM

Read your E&O policy.

Twin City Fire Insurance just sued SHRM to avoid paying a $10 million punitive damages award. The jury found intentional race discrimination, and Virginia law bars insuring punitive damages for intentional acts. The carrier says that exposure fell outside what it agreed to cover.

Meanwhile, MV Realty is suing Holland & Knight for up to $1.2 billion, alleging the firm advised on a business model for years without flagging the regulatory exposure that eventually drew suits from more than a dozen state AGs. The complaint frames the advice as running past what the engagement actually covered.

Consultants aren’t practicing intentional discrimination (better not be!), but they have had at least 15 years of scope creep.

HR guidance. Tax opinions. Legal interpretation. All of it happens in client conversations every week, usually with good intentions and real expertise behind it.

But what happens if you give bad advice and your E&O policy was written for insurance brokerage services and nothing else?

Calibrate what you do to what you’re covered for. Or get coverage that matches what you actually do.

Somewhere between $10 million and $1.2 billion reasons to check your policies today.