Every business owner understands that there are risks inherent in their line of work. In today’s environment, comprehensive liability insurance coverage is essential. This plan should include a professional liability policy.
What Is Covered Under Professional Liability Insurance?
Also known as errors and omissions insurance, professional liability coverage protects against claims made by clients in a number of circumstances.
- Errors and Omissions – If your company offers professional services or advice to clients, this policy protects you and your employees from potential lawsuits filed by clients who claim mistakes were made that caused them financial hardship. Even if the claim has no merit, you may get tied up in a legal battle that can wind up costing a lot of money in legal fees.
- Negligence – Your company may be sued by a client that claims reasonable care was not given to them, resulting in harm. This can include failure to deliver services within the agreed-upon timing. Harm caused by negligence can include financial loss and damages, as well as the traumatic conditions that resulted.
Professional liability insurance doesn’t cover intentional harm to clients, however. You also need general liability insurance to cover clients’ injuries at your facility and damages caused by your employees at a client’s office.
Make sure you are prepared for clients’ claims with a comprehensive liability policy.