Professional Liability Insurance

Even the most experienced and responsible businesses may eventually make a mistake. Despite your best intentions, your company must be prepared for these situations, as they could potentially incur significant financial consequences. Fortunately, professional liability insurance can provide robust and versatile coverage for such incidents.  

What Is Professional Liability Insurance? 
Also known as errors and omissions insurance, professional liability insurance casts a wide safety net across many common incidents and allegations that might otherwise lead to devastating out-of-pocket costs. These policies should be considered an integral component of loss control measures for any business that provides professional services, guidance or advice. 

How Does Professional Liability Insurance Work? 
Professional liability insurance is a contractual agreement between your business and its insurance company. By purchasing and maintaining a policy, you may be able to access crucial financial assistance in response to certain third-party lawsuits. Specifically, if a client or other party alleges that your company was at fault for their losses, your coverage may help pay for various legal expenses, including representation, settlements, judgments, court costs and expert witness fees. 

What Does Professional Liability Insurance Cover? 
If a client believes that your organization caused their losses by providing inadequate services, the resulting lawsuits may have dire financial implications. These claims may arise from many common allegations, including the following: 

• Professional errors
• Negligence
• Incorrect advice
• Misrepresentation
• Oversights
• Missed deadlines