When least expected, a small business may be subjected to a professional liability lawsuit. These suits may claim that you've been negligent or made an error or omission while performing your services. Liability damages may cost hundreds of thousands of dollars.
Professional liability insurance can help you and your firm pay defense costs and judgments that come from claims of professional negligence, error, or omission.
What is professional liability insurance?
Professional liability insurance helps cover you and your company if you are found negligent in the professional services you provided. For example, if you make a clerical error that costs a client thousands of dollars or if you work as a photographer and accidentally damage a client’s wedding photos. These situations could have costly legal repercussions. Professional liability insurance will help cover the costs and fees associated with the incident.
Who Needs Professional Liability Insurance?
Many types of businesses need professional liability insurance, which is also known as errors & omissions, or E&O insurance. If you work directly with customers by providing services, you should definitely consider a professional liability insurance policy. Here are some examples of how certain businesses can benefit from professional liability insurance.
Technology is integral to the operation of most businesses today. When technology fails, the financial impact to a business can be significant, and the companies affected often sue their technology product or service providers over errors. Unfortunately, most traditional liability insurance policies are not designed to respond to pure financial claims. Professional Liability policies can help protect against errors and omissions (E&O) risks for a broad array of technology companies, including those in the fields of:
Real Estate Professionals
Errors and omissions liability insurance coverage (E&O) can help protect a wide range of real estate firms against losses resulting from negligence, errors and omissions in the performance of their services.
No two law firms are alike, a smaller legal practice typically has different coverage needs than a much larger law firm, but Professional Liability policies can be tailored by virtually any firm to meet their liability coverage needs.
Accountants and Tax Preparers
Whether you are a Certified Public Accountant, tax preparer or bookkeeping firm, small to midsize accounting firms need protection from potential liability and malpractice claims. T
Consultants and Other Professionals
Miscellaneous professional liability insurance coverage helps protect consultants and other professionals against errors and omissions that may arise from the professional services they provide to clients and other third parties.