Who needs professional liability insurance?

If you or your company provides services, advice or products, then you need a professional liability insurance policy. Let’s face it: people make mistakes. Some mistakes are more costly than others and you’ll want to be protected when the inevitable happens.

Also known as Errors and Omissions (E & O) insurance, professional liability insurance protects you in case a client sues you for damages from negligence, error or omission. A professional liability insurance policy will pay for defense costs and judgments that are not typically covered under a general liability policy.

Doesn’t my general liability insurance policy cover professional liability?

Usually not. General liability insurance policies normally only cover medical costs and defense costs associated with physical harm of an individual, damage to property or advertising injuries. Most mistakes from service providers do not cause these types of damages, but rather the damages are financial in nature – time, money or both.

What types of industries need professional liability insurance?

Nearly every profession has some sort of professional liability to their clients. If there is a possibility that the client will incur a financial loss, then the service provider should have an E & O insurance policy. Medical service providers, such as doctors, dentists and medical technicians, carry specific policies, typically under the title of malpractice insurance.

Some industries that should carry Errors and Omissions insurance are:

  • Accounting Firms
  • Financial services
  • Consultants
  • Construction and maintenance
  • General contractors
    • Plumbers
    • Painters
    • Electricians
    • Janitorial
  • Attorneys
  • Architects
  • Engineers
  • Software developers
  • Website design and developers
  • Beauticians and salon service providers
  • Personal Trainers
  • Photographers
  • Occupational and Physical Therapists

If you are in the service industry and want to protect your business, fill out our online contact form or give us a call and we’ll get you set up with the right professional insurance portfolio that fits your needs.

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