Professional Liability insurance, sometimes called Error and Omissions Insurance (E & O), provides protection for businesses that provide professional services against financial claims that come up as a result of those services. This type of insurance is not part of the General Liability insurance it is an additional coverage, typically a separate policy.
Who needs it?
Owners of businesses that offer professional services need professional liability insurance. Depending on the industry Professional Liability may be legally required. Here are a few examples of industries where Professional Liability can protect a business from a mistake: Architects – Attorneys – Consultants – Designers – Engineers – Financial Advisors – Insurance Agents – Real Estate Agents
What does it cover?
Professional Liability insurance covers the costs that arise from the service the Professional offers or the advice they provide a client.
Factors that effect the cost of Professional Liability Coverage:
Amount of coverage: The more coverage you need, the higher your premiums will be.
Deductible: Deductible is the amount of money you have to pay out of pocket for a covered claim, before the insurance coverage will kick in.
Industry: Certain industries, like architecture and construction, are more prone to negligence lawsuits than other industries and face larger premiums.
Company size: The larger a company is, the higher the premiums will be because a larger company is likely to have higher legal costs.
History: The insurer will consider the history of any lawsuits filed against your company.
Does your business need Professional Liability? Reach out and let’s talk about it. We can get some information from you and provide a quote!