Even if you’re considered an expert in your industry, you can still make a mistake. A Professional Liability Insurance policy protects your business from costs associated with professional negligence claims. The licensed insurance agents at Excellence First Insurance can help you understand your business’ options and choose a Professional Liability Insurance policy that offers the protection your business needs.
What is Professional Liability Insurance?
Professional Liability insurance, also known as errors and omissions insurance or E&O insurance, protects you and your company from professional liability claims. If a customer or client believes the professional services or advice you or your business provided them results in damage or harm, they can file a professional liability lawsuit against you and your business. Professional Liability Insurance helps pay for the costs you or your business are found legally liable for as a result of these claims.
What is Professional Liability Insurance?
In some states, certain professionals cannot legally offer their advice or services to clients and customers without carrying Professional Liability Insurance. The following types of professionals typically carry Professional Liability Insurance:
• Consultants
• Attorneys and Lawyers
• Engineers and Architects
• Counselors and Therapists
• Accountants and Tax Preparers
• Information Technology (IT) Professionals
• Real Estate Agents and Property Inspectors
Even if you’re not required to carry Professional Liability Insurance, these policies can benefit anyone whose work involves directly offering advice or services to a customer or client.
What Does Professional Liability Insurance Cover?
A standard Professional Liability Insurance policy provides coverage for the legal expenses and awards for damage related to a professional liability claim. This coverage protects you and your business from having to pay these costs directly out-of-pocket.
Legal Expenses
If a client or customer files a professional liability claim against you or your business, this coverage helps pay for the costs related to your legal defense. Legal expenses includes costs for legal representation in and out of court, expert witnesses, documentation preparation, filing fees, and other court fees or fines.
Awards for Damages
If the court finds in favor of the client or customer who is suing you or your business for professional negligence, this coverage helps pay for the compensatory damages – awards granted to the plaintiff to compensate them for actual damages, injury, or loss. However, most Professional Liability Insurance policies do not cover punitive or exemplary damages – awards granted to the plaintiff to punish the defendant for their behavior, deter them from repeating the behavior, and make an example out of the defendant that deters others from engaging in the same behavior.
Contact Excellence First Insurance today and let our licensed insurance agents help you find the professional liability protection your business needs. We work with several competitive insurers and can help you find the Professional Liability Insurance policy that offers the best protection within your budget.
Ready for your insurance review? Call or fill out the form below to request an appointment.
What Do You Want To Insure?
