Professional Liability Insurance (Errors & Omissions)
What is professional liability insurance?
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects your business in the event that a client claims your professional services caused them financial loss.
Even if you haven’t made a mistake, you may still need to defend your company, and this insurance helps cover legal costs.
What does it cover?
Professional liability insurance commonly covers:
Alleged or actual negligence
Services performed in the past (depending on your specific coverage)
It can help pay for:
Defense and legal costs, including attorney fees
Any settlements or judgments you are required to pay
Who needs it?
Consider purchasing professional liability insurance if you can answer “yes” to any of the following questions:
Do you provide services for a fee?
Do you regularly give advice in your business?
Are you required by your clients to carry errors and omissions (E&O) insurance?
In today’s litigious environment, even if you’ve done everything right, you could still face a lawsuit and find yourself paying thousands to defend your business.
How do I get started?
To obtain professional liability insurance, follow these steps:
Gather Essential Documents: Collect your resumes, contracts, financial statements, and employee handbook. Insurers often request these for the best rates.
Provide Detailed Information: Include specifics about your quality control and training procedures to improve your chances of favorable coverage.
Consult with a Broker: Working with an experienced insurance broker can help you find the right coverage.
Being prepared will help you secure the best coverage at a competitive rate.