The Ins and Outs of Professional Liability Insurance
What is Professional Liability Insurance?
Professional liability insurance, or errors and omissions insurance (E&O), covers businesses that offer professional and personal services. With professional liability insurance coverage, you’re protected in the event that a client is harmed from advice or a service that you provided and for which you are legally liable.
Why Get Professional Liability Insurance?
Having professional liability insurance is important for protecting yourself against bearing the full cost of defending against, and damages awarded in, a claim of negligence from a client. It’s often not included in general liability as you may think. One of the biggest benefits of having professional liability insurance is that it can help you and your company pay for legal defense costs and damages in the event of a covered claim that results in a lawsuit, even when allegations are baseless. For covered claims, the policy will pay defense costs, approved settlements and judgments against you, and associated court costs (all up to your policy’s coverage limit).
Who Needs Professional Liability Insurance?
Generally, professional liability is purchased by professional service business, but it can help other types of businesses as well. A retailer could even be sued if they ship an order to the wrong address. Regardless of what business your in, mistakes can cause financial harm to a client and put you at risk of litigation. If you provide a professional service or give advice to clients regularly, you should seriously consider professional liability insurance.
How Do You Get Professional Liability Insurance?
Call the experts at Avante Insurance today at 305-648-7070 or visit us online to learn more about professional liability insurance and how to get a policy that will protect you and your company in the event of a claim.