Professionals are individuals who are formally certified in a specific area of knowledge and in their career. They provide advice, service and expertise to clients. Sound familiar?
As a professional, you operate in an environment where everyone strives for perfection and client expectations are extremely high. However, we are all human and mistakes do happen.
When a client follows the advice of a professional and suffers a loss, that client can take legal action. Those unforeseen errors and/or omissions that may occur can lead to a lengthy and costly lawsuit with sizable defense costs and settlements or judgements that are financially devastating to your business and overall financial security.
The best way to prepare for the unknown is by taking preventative action. Professional Liability Insurance, also known as Errors & Omissions (E&O) or malpractice insurance, is coverage that will protect against negligence and other claims initiated by clients.
Professional Liability insurance is required by law in both the medical and legal practice areas and is sometimes required under contract by other businesses that are receiving the advice or service. Numerous other professions invest, or should invest, in this insurance despite the absence of the legal requirement to have it.
Additionally, it is vital to understand that all insurance policies are NOT created equal. Important factors to be mindful of include understanding if the defense costs are inside or outside the policy limits and the policy’s retroactive date. It is strongly recommended that you pursue Professional Liability options through an agent who has extensive experience with these types of policies and to review existing policies every couple of years to ensure the limits are adequate and consistent with the work at hand.