But don’t worry, there’s an insurance coverage for that. If you have a client who thinks you’ve made a mistake, which has caused financial harm, he or she may decide to sue your business. Do you know what happens then? Well, if you have professional liability insurance, you should have the coverage needed to pay your legal fees and damages that are incurred. Professional liability insurance, also known as errors-and-omissions insurance, helps cover you and your company if you are found negligent in the professional services you have provided to clients.
Any business that works with clients (e.g., law firms, real estate agencies, accountants and financial institutions, marketing and publishing firms, educational institutions, medical providers, hair salons, engineers, architects, and professional photographers), should consider adding professional liability coverage to their insurance portfolios.
Your commercial general liability policy will cover bodily injury or property damage you cause to a third party. However, this policy does not cover economic or financial damage you cause. Coverage for financial injury resulting from errors or omissions in the service you provided will require a professional liability policy. Personal injury caused by medical providers will require a medical malpractice policy. While damages ultimately awarded will be paid by these policies, it is the legal defense coverage that will prove to be equally important for your protection.
Coverage options may differ and vary depending on your specific business. We are here to help you determine the options that best fit your needs. Call us today.