Get instant
small business insurance quotes

Home > Professional Liability/Errors & Omissions Insurance > News

Everest College parent corporation served litigation papers


A suit against the parent corporation of a California-based educational institution was filed after Kamala D. Harris, California attorney general, alleged that Corinthian Colleges, Inc., misrepresented job-related information. 

The lawsuit asserts Corinthian Colleges, Inc., angled numbers associated with job placement throughout the university to appear more successful in placing students and graduates in career positions. Specifically, the suit states that a temporary agency was hired to place students in nonpermanent or short-term positions in one circumstance and included students who worked two days during a school fair as 'employed.'

In addition to the issues associated with the numbers on record, the lawsuit alleges the company published millions of online ads showcasing programs or classes that it didn't actually have and that the company applied U.S. military seals on recruitment brochures that could imply a relationship between the school and the government, a violation of California law, according to News Leader. 

Due to the array of allegations, the lawsuit could pose a threat to the reputation and finances of the parent company, an issue that can be avoided through the purchase of professional liability insurance

Professional liability insurance is a key tool for employers who wish to safeguard their assets from costly litigation fees including court and lawyer expenses. Additionally, any loss as the result of a nonfavorable verdict will be covered by the insurance. 

As the prevalence of lawsuits against employers increases, including those in class action suits, as does the need for business insurance to protect and preserve the well-being of the company. 

WHY Business Insurance Now?

Learn why thousands of small businesses trust Business Insurance Now as their insurance agency.

Take 15 minutes to see how we can help you protect your business.

  • FREE, no-obligation quotes.
  • Complete one online application to compare multiple quotes.
  • Fast response—typically less than 24 hours on week days.
  • We are a nationwide insurance agency covering 48 states.
  • We work directly with you to evaluate your insurance options.
  • We only work with the top business insurance carriers in the country.
  • Expert, licensed insurance agents to guide you through the process.