What is Professional Liability Insurance?
If you provide consultation, design work or advice as a part of your professional services, this form of liability coverage can protect your organization. Also known as “Errors and Omissions” Insurance, this coverage is designed to cover potential claims due to a loss that a client may experience from your services.
Who can Benefit from Professional Liability Insurance?
The businesses that provide consultation as professional services to clients should consider purchasing Professional Liability Insurance. Professional Liability Insurance provides protection when a business owner is sued for negligence when their work doesn't meet a client's expectations. Professional Liability Insurance can also be required by a business' client when entering into a contract.
Professional Liability Insurance for Businesses
Professional Liability Insurance offers different types of coverage for businesses including:
Alleged or actual negligence– Protects a business against actual or alleged negligence when providing professional services, such as giving incorrect advice, omissions, or failing to deliver a service.
Defense costs– Provides legal defense when a covered claim is reported.
Personal injury (i.e. libel or slander)– Can provide protection for small businesses against both libel and slander if it’s committed as part of your professional services.
Copyright infringement– Can provide coverage for damages or claims expenses for copyright infringement.
Professional liability insurance can also offer coverage for claims from services provided in the past and work performed anywhere in the world.