Professional liability is a great way to limit your liability exposure as a business owner. You may have heard of errors and omissions insurance, another name for professional liability insurance, which limits your liability exposure from mistakes you or your employees may make with your business. For example, an accountant who fails to file their client’s taxes on time may be sued if their client is penalized by the IRS. This negligence may be covered under a professional liability policy.
Key Highlights of an Errors and Omissions (E&O) Policy:
- Beneficial to many types of professions
- Protects you or your business from being sued
- Covers you in the event of negligence, inaccurate information, or misrepresentation
- Can be a stand-alone policy or added as an endorsement to other commercial policies
- Usually written on a claims-made basis but can also be written on an “occurrence” basis
- Price is dependent on industry, location, the limit of liability, and claims experience
As a business owner, professional liability insurance is essential for you and your employees. A lawsuit can severely affect your financial stability and potentially force you to close your doors. Fortunately, you can limit this exposure by purchasing an E&O policy today to protect yourself from any errors you or your employees may make, regardless of your industry.
Professional liability insurance, also known as errors and omissions (E&O) insurance, is the best way to limit your liability exposure as a business owner. Professional liability limits your liability exposure by covering you for negligence, mistakes (real or perceived), inaccurate advice, misrepresentation, or copyright infringement. Mistakes can happen to the most experienced professionals, and if you are sued due to these mistakes, it can be financially devastating to your business.
Coverage breakdown of Errors and Omissions (E&O) Insurance:
You can either add professional liability as an endorsement to a commercial package policy (CPP) or buy it as a stand-alone policy. Either way, professional liability policies will pay for your legal defense if a claim is made against your business up to the limit of the liability selected. As with most insurance policies, a deductible usually applies, anywhere from $1,000 to $25,000.
Professional liability policies are often written as a “claims-made” policy rather than on an “occurrence” basis. This means a policy must be in force when an event occurs and when a claim is made. On the other hand, an occurrence policy is one where the policy only needs to have been in force at the time a loss occurs, regardless of when a lawsuit is filed. Lawsuits can be filed long after a loss has occurred.
Each client has unique and pressing needs. We offer broad coverage that can ensure your success, whether you are an individual mitigating risk or a business looking to grow. Our representatives can inform you of the tools you need to succeed.
- Standard coverages and custom solutions
- Ongoing support and consulting services
- A streamlined claims process