Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, is crucial for businesses that provide professional services or advice. It protects against claims of negligence, mistakes, or failure to perform professional duties, safeguarding your business's reputation and financial stability.
Professional Liability/E&O Insurance is a type of coverage that protects businesses and individuals who provide professional services or advice from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. It covers the financial consequences of errors, omissions, or negligence in the services you provide.
Any business or individual that provides professional services or advice should consider this coverage. This includes but is not limited to lawyers, accountants, consultants, real estate agents, insurance agents, architects, engineers, and technology service providers.
General Liability Insurance typically covers bodily injury and property damage claims. Professional Liability/E&O Insurance covers financial losses that a client may suffer due to errors or omissions in the professional services you provide.
No, this insurance is designed to cover unintentional mistakes or negligence. Intentional wrongdoing or criminal acts are typically excluded from coverage.
While it's not always legally required, some professions (like lawyers and doctors in many states) are mandated to carry this insurance. Additionally, many clients require it as a condition of doing business.
Some policies offer retroactive coverage, which can cover work done before the policy was purchased. This is often referred to as "prior acts coverage." Be sure to discuss this option with your insurance provider.
The amount of coverage needed depends on various factors, including your industry, the size of your contracts, and your risk exposure. It's best to consult with an insurance professional to determine the appropriate coverage limits for your specific situation.
This can vary by policy. Some policies cover temporary or contract workers, while others may require an endorsement to extend coverage. It's important to clarify this with your insurance provider, especially if you frequently use contract workers.
Yes, many insurers offer industry-specific E&O policies that are tailored to the unique risks of particular professions. These specialized policies can provide more comprehensive coverage for your specific professional activities.