What is a Professional Liability Insurance?
Professional liability insurance is a specific type of insurance that professionals and organizations purchase to get coverage for claims your customers could file, saying errors in your services – or part of the job that you did not perform – caused them financial injury or loss.
These kinds of claims are rather frequent in most service oriented businesses, and you need coverage for the costs of defending your business in lawsuits and for any damages awarded against you.
The costs of handling professional liability claims can be significant. Therefore, most organizations and professionals providing a variety of services to customers make sure they have adequate professional liability coverage.
Read more about what is covered in a comprehensive professional liability insurance policy.
WHO NEEDS ERROR AND OMISSION INSURANCE?
Error and omission insurance, which is another – and a more commonly used – name for professional liability insurance, is a highly sought insurance in services sectors. Professionals that provide specialized services along with consulting or expert advisory services often become victims of professional liability claims and seek coverage against them.
If you manage a services oriented business, your clients may expect you to have appropriate error and omissions insurance. This enables your clients to feel better about working with you,assured that you will be able to fix any serious problems that emerge out of the service experience.
Therefore, having proper E&O insurance coverage will only help you get more business and clients will be able to trust you more.
In certain service practices, having professional liability coverage is mandatory, including legal and medical practices. In these fields, error and omissions insurance is often termed as malpractice insurance.
In short, if you are in any kind of services related business, you should get comprehensive professional liability insurance.
KEY BENEFITS OF GETTING A PROFESSIONAL LIABILITY POLICY
There are many benefits to purchasing a professional liability insurance policy from a reliable carrier:
- You get coverage for the costs of fighting civil lawsuits for professional liability
- You demonstrate to your customers and clients that you are willing to fix problems caused during their experience of using your service
- You get the trust and business of more clients
- You do not have to pay for any legal costs on error and omission claims out of your business
PROFESSIONAL LIABILITY COVERAGE
Professional liability insurance coverage takes care of a number of special liabilities that are not covered in other types of liability insurance products. These special liabilities include:
- Incomplete or below-par services
- Errors or oversights
- Breach of contract
The coverage you get in a good professional liability insurance product generally covers the following:
- Legal fees
- Court fees
- Costs of damages awarded against you
To get comprehensive professional liability insurance, contact one of our agents right now.
What Does Professional Liability Insurance Cover?
In simplest of terms, your professional liability insurance coverage will include claims filed with complaints against your services for:
- Below-par quality
- Contract breach
With a comprehensive error and omission insurance policy, you can find complete coverage for costs of legal proceedings and attorneys’ fees as well as payment of any damages awarded.
CLAIMS COVERED – AND NOT COVERED – IN PROFESSIONAL LIABILITY INSURANCE
Errors and omissions insurance covers all significant costs and payments related to legal expenses incurred during the lawsuit and certain types of damages. However, if the claim against you is filed for a criminal lawsuit, your professional liability policy will not cover the costs involved.
Similarly, there are many types of civil liabilities that may not be covered by your errors and omissions insurance policy unless those explicitly listed in your policy contracts.
- Incorrect advice
- Breach of good faith
E&O INSURANCE COVERAGE IN OTHER TYPES OF INSURANCE
The industry of insurance has expanded significantly with endless products offered for various types of customers these days. Many times professionals and organizations are looking for a specific type of coverage and happily buy a policy only to discover there are other types of packaged insurance products that provide the coverage they needed at a cheaper price.
For instance, if you have a small services outfit, you can probably find adequate professional liability coverage in a comprehensive business owners insurance policy without having to purchase separate coverage for possible E&O liabilities.
As you can see, having an advisor to guide you for your insurance coverage needs can help you save unnecessary spending and get the most efficient insurance products for your business.
As an independent insurance brokerage service, we pride ourselves in finding insurance products for our clients that fit their specific needs at the best price possible. Working with the singular objective of protecting you and your interests, we will help you get the right insurance coverage for professional liability from our network of carriers across the country.
Request a quote for comprehensive professional liability insurance coverage from Ficke Insurance that will cover your field-specific risks