Professional Liability

Professional Liability can take many forms. For most professions, it may be referred to as  (Errors and omissions Insurance) covers those professional mistakes or items you may have overlooked in providing your services and/or expertise to your clients. 

This type of Liability arises when your client suffers financial harm due to mistakes mad on your part (errors) or because you failed to do provide your service (omissions).

This insurance could cover most of the costs of defending your company or you in a civil lawsuit. Errors and ommissions insurance may also pay for certain damages that could potentially be awarded, even if any legal action turns out to be baseless.

The following professions may require this coverage (Errors & Omissions (E&O) liability insurance):

  • Medical (Doctors, Nurses, other medical staff)
  • Legal (Lawyers, Notaries)
  • Financial Services (Bankers, Brokers, Financial Advisers, Insurance Agents)
  • Architecture (Architects, Surveyors)
  • Real Estate (Realtors, Mortgage Brokers, Originators)

Professional Liability Insurance Covers:

  • Defense Costs
    • When a covered claim is reported,  the insurer will defend you.
    • The insurer may also appoint an attorney if necessary, even if the claim is groundless.
  • Libel or Slander (Personal Injury)
    • If you commit a personal injury offense and are found civilly liable as part of your professional services you may be covered if offered in your policy.
  • Copyright Infringement
    • This coverage tends to apply to specific industries but where applicable protects you from the damages and claims resulting from the infringement of trademark or copyright.
  • Claims and damages
    • This coverage protects your business from some of the punitive damages which could force you to close your business.
  • Claims arising from past services.
    • Few carriers provide this coverage however it is available to cover claims that may have existed prior to the policy start date.
  • Alleged or Actual Negligence
    • This includes giving incorrect advice, an omission, or failing to deliver your service.

Professional Liability Insurance does not cover:

  • Bodily injury or property damage
  • Employment matters
  • Criminal Prosecution
  • False Advertising
  • Non-Standard Risks
  • Other Services
  • Disclosure of Personal Identifiable Information
  • Fraudulent Acts

It is essential to review your policies and discuss your specific situation with a licensed agent in order to get the best available coverage for your specific situation.

The following list is examples of common Professional Liability risks.

  • Civil Negligence
    • Example: A photographer is contracted to photograph a wedding, but forgets to take pictures of the bride and groom with key family members.
      The client makes a claim against the photographer for failure to deliver the services agreed upon within the contract.
      A professional liability insurance policy could protect the photographer if such a claim is made.
  • Misrepresentation
  • Violation of good faith and fair dealings
  • Inaccurate Advice
  • Violations of privacy

If someone is paying you for your professional service and expertise it is a wise idea to carry coverage that can protect you from any mistakes you could make or any omissions that impact your clients.

Contact Us today to review your existing coverage and get a quote for your risks.