As a professional in your industry you provide services and/or advice to clients. You are great at what you do, but mistakes can happen either as an error or an omission, and if one costs your client financially you could be looking at a lawsuit. This is where Professional Liability Insurance comes in to play. Professional liability, sometimes called Errors & Omissions (E&O) insurance helps protect you and your company against a claim that professional services or advice you provided caused a client financial harm due to mistakes on your business’s part. A mistake can either be an error, an omission, and/or a failure to perform some service.
For example, a tax accountant could have a claim that they made a mistake on a form or calculation, that they failed to advise/include a form in the needed paperwork, or that they failed to submit the paperwork to the proper authorities. Each of these claims would fall under their Professional Liability policy.
Who needs it?
There are a wide range of businesses that need Professional Liability Insurance. Certain States may even require specific professional industries to carry it. Other times, clients can mandate that a business have coverage before contracting them to do work. Even if these situations don’t apply, if you provide a professional service or offer clients professional advice having Professional Liability insurance is a smart move.
What does it do?
Professional liability insurance helps cover common claims including negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. Depending on the terms, a professional liability insurance policy may also help cover privacy violations.
What does it cost?
The cost of Professional Liability Insurance varies from business to business depending on a number of factors. There is no one size fits most solution.
Here are some factors that may come into play:
Revenue: The more revenue a business earns, the higher the risk of lawsuit.
Location: Different states can have different minimum coverage laws
Number of Employees: The more employees a company has the higher the risk.
Industry: Depending on your industry the repercussions of mistakes or omissions can vary greatly.
Claims History: If you’ve had a claim in the past your rates are likely to be higher.
If you’d like to get a quote contact Concklin Insurance Agency to speak to a Trusted Insurance Advisor.