Everyone makes mistakes. Are You Covered?
Professional Liability Insurance
What is Professional Liability Insurance?
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a type of insurance that provides coverage to businesses and individuals in the event of a lawsuit claiming negligence, errors, or omissions in their professional services. Professional liability insurance typically covers legal fees, settlements, and judgments that arise from such claims, helping to protect professionals from financial ruin.
Who needs Professional Liability Insurance?
Professional liability insurance is essential for businesses and individuals who provide professional services, such as lawyers, doctors, accountants, architects, and consultants. Even the most experienced professionals can make mistakes, and when they do, their clients may hold them liable for the resulting damages. Professional liability insurance can provide peace of mind to professionals, knowing that they are protected against financial losses arising from claims of negligence or error.
How does Professional Liability Insurance work?
When a client files a claim against a professional, the professional liability insurance policy will typically cover the cost of legal defense, settlements, and judgments up to the policy limit. The policy limit is the maximum amount that the insurance company will pay out in the event of a claim. Professional liability insurance may also provide coverage for claims that arise after the policy has lapsed or expired, as long as the incident occurred during the policy period.
Professional Liability Coverage is Vital
Professional liability insurance is a vital type of insurance for professionals who provide services to clients. It can help protect against the financial consequences of claims of negligence, errors, or omissions, and provide peace of mind to professionals knowing that they are covered in the event of a lawsuit. Whether you are a small business owner or a self-employed professional, it is important to consider professional liability insurance as part of your risk management strategy.