Professional Liability Insurance:
What You Need To Know
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Professional liability insurance is a type of insurance policy that often acts as a barrier between a business and its customers. Also known as errors and omissions insurance, it protects business owners from being sued by clients or consumers who feel that the business has failed to adequately perform the professional service requested. This failure can take the form of a mistake by your business (an error) or a failure to perform a service or a part of a service (an omission). E&O insurance is commonly used to supplement general liability insurance for companies that are consistently dealing with customers and wish to protect themselves against improper lawsuits and damages that might arise out of them.
How can you tell if you need professional indemnity insurance?
Typically, only companies that provide professional services and regularly give advice to clients need to take on this type of insurance policy. In many cases, clients will actually require that certain professionals have e and o insurance before they will agree to hire them for a particular job. It is not only businesses that commonly purchase this insurance either: lawyers and doctors who operate as sole proprietors usually have some form of e and o, which is called malpractice insurance for doctors.
How much professional liability insurance do I need?
Lawsuits are becoming more and more common as Americans become more litigious, and e and o insurance is one of the best policies that can protect you from protracted court battles and unfair settlements. It can even ensure that you are not solely responsible for any claims and damages that losing a lawsuit can dredge up. Financial consultants, technology professionals and architects are key candidates for this type of coverage, because their work is so client-centric and any errors or omissions can be financially or reputationally calamitous. How much professional liability insurance you purchase depends on your business activities, your appetite for risk in general, and the extent of any related insurance coverage you have already purchased for your business.
What does professional liability insurance cost?
That depends on your own personal situation, but luckily we can help you figure out exactly how much insurance you need, and how much it will cost you. Visit our website or give us a call today to request a professional indemnity insurance quote and never worry about the negative business effect of a false client accusation ever again.
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