What is Professional Liability Insurance/Errors & Omissions Insurance?
If your business involves services such as giving advice, making recommendations, designing products, providing physical care or representing the needs of others, you could be sued by customers, clients or patients claiming your failure to perform your job properly had harmed them in some way. Professional liability insurance, also known as errors and omissions or malpractice insurance, covers these situations. The policy will pay any judgment for which the insured is legally liable, up to the policy limit. It also provides for legal defense costs, which can be substantial, even where there has been no wrongdoing.
Do I Need Professional Liability Insurance for My Small Business?
Errors & Omissions Insurance covers professionals for negligence and errors or omissions that injure their clients or cause damage to a third party’s data. This type of insurance is particularly important to licensed professionals such as accountants, attorneys, insurance agents, architects, engineers and technology companies.
What Does Professional Liability Insurance Cover?
- Alleged or Actual Negligence- Protects a business against actual or alleged errors and omissions when providing professional services, such as giving incorrect advice, an omission, or failing to deliver a service.
- Defense Costs- Provides legal defense when a covered claim is reported.
- Personal Injury (e.g., 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.
How Much Does Professional Liability Insurance Cost?
The cost of a professional liability insurance policy will depend on your business size, the amount of protection you want and any state required limits you’ll need to meet. The best way to get a true idea of cost is to get a quote specifically for your business and to review it carefully to make sure all of your concerns are truly covered. Filling out a quote request form will help start the process.
Let us help you make an informed decision about your business insurance needs. Our licensed agents specialize in helping small businesses obtain the best coverage at the best price, give us a call today at 888-834-8619.