$1M Professional Liability (E&O) Insurance for OSHA and Safety Trainers

For OSHA and safety trainers, a $1M Professional Liability (E&O) requirement means your policy pays up to $1M per claim for losses clients say your training or advice caused.

What does a $1M requirement mean for OSHA and safety trainers?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your training or safety advice caused a client a loss. A typical clause looks like this:

• Per claim: the most the policy pays for any one claim. Here, $1M.
• Aggregate: the most the policy pays for all claims in one policy year. Here, $2M. A $1M/$1M policy would not meet this clause.
• Claims-made: Professional Liability almost always covers claims made and reported while the policy is active, for work done on or after the retroactive date (the earliest date of work the policy covers). A claim first made after the policy ends is generally not covered, so ask about a tail (an extended reporting period). See claims-made vs occurrence and tail coverage.
• The services listed: the policy should describe what you actually do, such as OSHA Outreach classes, HAZWOPER (hazardous waste operations training), forklift training and site audits.

Who asks OSHA and safety trainers for $1M?

Clients that may ask for $1M include:

• General contractors and builders hiring you to run OSHA 10-hour or 30-hour classes for crews.
• Manufacturers and warehouses bringing you in for forklift, lockout/tagout or confined space training.
• Staffing agencies that need workers trained before they go to a job site.
• Vocational schools and colleges running safety courses.

School districts, universities, government agencies and large corporate clients also commonly ask for $1M. Some ask for higher limits or a larger aggregate, especially on high-hazard sites or larger contracts.

How is $1M built?

At $1M, the limit is usually one primary policy (the policy that pays first), often a Miscellaneous Professional Liability form made for service businesses. Check that every course is listed, and how it fits with your General Liability (the policy for injuries and property damage to others).

A commercial umbrella almost never covers Professional Liability, so it usually cannot help you reach the limit. Clients usually cannot be added as an additional insured (a client named as protected under your policy) on Professional Liability. When a carrier does allow it, it is often limited to the client's liability arising from your services. Check what your contract requires. Many clients accept a certificate of insurance (a document that shows you have coverage) instead. It does not add anyone to your policy. Clients of programs that train minors may also ask for abuse and molestation coverage, which is usually separate.

What will underwriters ask for?

An underwriter is the person at the insurer who decides whether to offer coverage and on what terms. For safety trainers, they usually ask about:

• Each course you teach, with a rough share of revenue from each.
• Whether you only teach, or also do site inspections, write safety programs or act as a site safety officer.
• Whether you sign off on a worker's skills, such as a forklift operator evaluation.
• Industries you serve, such as construction, oil and gas or chemical plants (more dangerous work).
• Trainer credentials, outside trainers, and records you keep, such as sign-in sheets and tests.
• Revenue, largest contracts, prior claims, and your current policy and retroactive date.

What affects the cost?

• Training vs consulting. Site audits and safety program work usually cost more than classroom teaching.
• Industries and size. Dangerous industries, more revenue and larger clients usually raise the price.
• Claims history. Prior claims can raise the price or narrow options.
• Policy terms. $1M/$2M usually costs more than $1M/$1M. A higher retention (the amount you pay on each claim, similar to a deductible) usually lowers the premium.

Frequently asked questions

Do I need $1M Professional Liability as an OSHA or safety trainer?

Only if your contract or client asks for it, but many clients that hire safety trainers do.

Is $1M enough, or do I need $2M as an OSHA or safety trainer?

It depends on your contract. If the clause says $2M per claim, $1M does not meet it. See $2M for OSHA and safety trainers. Morrow can review the clause and your current policy.

I have a $1M/$1M policy and the contract asks for $1M/$2M. What now?

Request new quotes for a $1M/$2M policy. Morrow can ask carriers to keep your retroactive date and prior acts coverage (coverage for work you did before the new policy starts) where the market allows. In most cases, keep your current policy in place until the new one starts, so there is no gap. Report anything that could become a claim to your current carrier before that policy ends.

What kinds of claims could a safety trainer face?

Most claims say your training or advice was wrong or incomplete. Here is a hypothetical. A worker you trained is hurt in a fall. The employer is cited and says your class left out a required topic, and wants you to pay its losses. Whether a claim like this is covered depends on the policy's bodily injury exclusion (a listed type of loss the policy does not pay for), and many policies also exclude fines and penalties.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.