What is professional liability insurance?
Professional liability insurance protects your business assets from claims that may result from advice, expertise or professional services you provide. If your business engages in these activities, you could be at risk for being sued by a customer, client or other party who claims he or she lost money or was harmed in some way due to a negligent act, error or omission.
Why buy professional liability insurance?
Professionals are expected to have extensive knowledge or training in their area of expertise. Additionally, they are expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to use the degree of skill expected, they can be held legally responsible for any harm or financial loss that they cause to another person or business.
What does professional liability insurance cover?
Professional liability insurance protects you in cases of faulty service (errors) or failure to provide a service altogether (omission). This type of insurance coverage pays the cost of your defense and any damages awarded (up to policy limits). Insurance companies have developed many specialized policy forms that respond to the individual risks of particular professions and services.
Professional liability coverage can protect against liability and help defray the cost of defense following a claim for an error, omission, or negligence in the performance of professional services. Newer insurance policies also provide coverage for privacy violations and breaches of computer security. Companies that view their exposures as either manufacturing- or product-oriented may be surprised to find themselves exposed to professional liability risks through outsourcing, online commerce, and intellectual property issues.
Sometimes called Errors and Omissions Insurance, Professional Indemnity Insurance, or Professional Liability Insurance, this is one of the most critical types of coverage for some of the following businesses:
- Accountants, Attorneys, Architects and Engineers
- Banking, Investment Banking and Broker/Dealers
- Insurance Companies and Asset Managers
- Media, Communications, Entertainment
- Merchant Banking and Venture Capital
- Health Care Professionals and Biotechnology
The Liberty Company has extensive experience and excellent insurance carriers for all types of professional liability insurance. We would be happy to provide you with more information including pricing options.
Please contact us to learn more about your options for Professional Liability insurance.