Professional Liability
Professional Liability also referred to as Error & Omission; helps to protect businesses or individuals that provide a professional service, or give advice to their clients. This will give you coverage in the unfortunate event you are sued for the service(s) provided not meeting your clients expectations.
Many times professional liability insurance is required of a vendor when signing into a contract with them.
Types of professionals that should carry professional liability include, but are not limited to:
- Consultants
- Advisors
- Attorneys
- Realtors
- Accountants
- Counselors
- Engineers
- Architects
- Doctors
- Insurance Agents
- Graphic Designers
- Software Developers
- Etc.
There are two types of professional liability polices: claims-made and occurrence. Most professional liability insurance policies are “claims-made,” meaning that the policy must be in effect both when the event took place and when a lawsuit is filed for a claim to be paid. If, however, you change careers or retire, you may want to purchase an “occurrence” policy that will cover any claim for an event that took place during the period of coverage—even if the suit is filed after the policy lapses.
Professional liability insurance will pay the cost of legal defense against claims and payment of judgments against you, up to the limit of the policy. In general, coverage does not extend to non-financial losses or losses caused by intentional or dishonest acts. Other fees, such as licensing board penalties, may also be included. Policies will generally have a deductible ranging from $1,000 to $25,000. The amount of professional liability insurance you will need and how much it will cost depends upon the size of your business and the level of risk it poses.
Ask your Agent if your current Package policy allows you to include professional liability. Some companies will allow you to elect for this coverage on your package policy which gives you a discounted rate!
Contact an Agent today to learn more information on how this policy will protect you!