Get California professional liability insurance quotes, cost & coverage fast. Also known as errors & omissions insurance (E&O), it covers CA legal costs when a client sues you over your services or advice including negligence, work mistakes, & undelivered services.
CA Errors And Omissions Insurance
If you are an expert in a particular field and you use your expertise to make a living, than you are going to want to protect yourself with California professional liability insurance. Also known as errors and omissions insurance (E&O), professional liability coverage can help to pay for any expenses that you may incur in the event that someone you offer your services to decides to file a lawsuit against you.
For example, if you are an CA architect and a client isn't satisfied with the quality of the work that you delivered, he or she may decide to take legal action. If you have California professional liability insurance coverage, you won't have to pay for those legal expenses out of your own pocket.
Does My Business Need California Professional Liability Insurance?
Anyone who offers expertise and uses it to make a living should have errors and omissions insurance. Some examples of professionals who should have California professional liability insurance include:
- Medical professionals
- Real estate agents
- IT professionals
Compared to general liability which protects your business against 'physical' type of claims like slip and fall, professional liability can cover you from professional mistakes that cause a third party 'financial' losses.
What Does California Professional Liability Insurance Cover?
Errors and omissions insurance offers protection for the following:
- Work Errors. If one of your clients sues you because an error that was made on your behalf ended up costing him or her money, professional liability insurance will help to pay for your client's losses.
- Negligence. If your work doesn't live up to the standards in your industry, errors and omissions insurance will assist with paying for any legal expenses that you may incur if a client decides to sue you.
- Undelivered Services. If your work doesn't deliver on the promises that you made to a client, CA professional indemnity insurance will help to cover any expenses that may be associated with a breach of contract lawsuit that may be filed against you.
Protection Against Work Mistakes - No matter how hard you may try to avoid them, mistakes happen even, and they can happen to even the most experienced and knowledgeable experts. What happens if your mistake ends up costing a client money? They could end up pursuing legal action and file a lawsuit against you. If that happens, professional liability insurance is essential. This type of insurance covers the cost of any legal fees that you may be end up facing, such the cost of an attorney, court fees, and settlements that may be awarded to the person who filed the lawsuit.
Protection for Undelivered Services - Unfortunately, not all projects end up coming out the way that they are intended to. For example, if you promised a client that you would have a project completed by a specific date and you weren't able to deliver, even if there were viable reasons for the delay, he or she could take legal action. The client could state that you breached your contract and ended up costing them money. Professional liability insurance will help to cover the cost of the losses that your client endured, as well as pay for any legal fees.
Protection Against Negligent Services - Being an expert in your field helps you earn clients and make money, but it also sets the expectations pretty high. Even if the expectations of your clients are high, they are probably pretty reasonable. For example, if you are an architect, you should be able to deliver a building that is structurally sound and offers the components that your client has approved. If, for some reason, there is any issue with the safety of the structure, a client could sue you for negligence.
Negligence lawsuits tend to be quite costly. Not only could your client be awarded damages, but you could be forced to pay fees in order to prevent negligence in the future. California professional liability insurance will help to cover the expenses that are associated with this type of lawsuit.
What California Professional Liability Insurance Doesn't Cover
Professional liability typically does not cover:
- Bodily injury or property damage
- Fraudulent acts
- Employment matters
- False advertising
- Patents and trade secrets
How Much Does California Professional Liability Insurance Cost?
How much does California professional liability insurance cost? The premiums vary depending on the amount of coverage your choose and specific risk characteristics of your business. Following are some of the main factors that go into the price of a policy:
- Type of business (contracting, service, retail etc.)
- Business location
- Years in business
- Selected coverage limits
- Number of employees
- Years in business
Further Reading On Errors And Omissions Insurance
- Errors And Omissions Insurance For Nonprofits
- Is Professional Liability Insurance The Same As Malpractice Insurance?
- Lawyers Professional Liability Insurance
- Medical Marijuana Malpractice Insurance
CA Professional Liability Insurance Quotes
Request a California Professional Liability Insurance quote in Anaheim, Bakersfield, Chula Vista, Concord, Corona, Elk Grove, Escondido, Fontana, Fremont, Fresno, Fullerton, Garden Grove, Glendale, Hayward, Huntington Beach, Irvine, Lancaster, Long Beach, Los Angeles, Modesto, Moreno Valley, Oakland, Oceanside, Ontario, Orange, Oxnard, Palmdale, Pasadena, Pomona, Rancho Cucamonga, Riverside, Roseville, Sacramento, Salinas, San Bernardino, San Diego, San Francisco, San Jose, Santa Ana, Santa Clara, Santa Clarita, Santa Rosa, Simi Valley, Stockton, Sunnyvale, Thousand Oaks, Torrance, Vallejo, Victorville, Visalia and all other cities in CA.
The California Department of Insurance
The CA Dept. of Insurance is the regulatory agency behind the insurance rules for the state of California. If you want to understand these rules, then this is definitely the agency that you need to focus on. Let's start with limits within the state.
California Minimum Insurance Limits
- For auto insurance, California requires $15,000 per person and $30,000 per accident.
- For life insurance, there are certain regulations in place to determine how someone is able to get or offer life insurance, but there are no limits listed.
- For commercial insurance, insurance agents may offer broker or casualty insurance as well as covered property insurance, covered causes of loss, specified perils and open perils along with a number of coverage forms like builder's risk, legal liability, building ordinance, glass, peak season, inflation guard and peak element.
CA Insurance Regulations
As for regular insurance regulations there are a lot of things that California provides that you can look up. For example, there are deadlines for the insurer to pay the claim or deny it, deadlines for submitting paperwork to prove a loss for insurance reimbursement, specific information your insurance company is required to give you and regulations on what information you have to provide to your insurance company.
One of the California regulations calls for you to be treated by your insurance company in good faith. This means that your insurer must be considered of your needs and must communicate completely and honestly with you about your policy and everything that you need to know about it in order to make a good decision. In turn, you are legally obligated to be honest and cooperative with your insurance company when it comes to your claim.
You should also be aware that your insurance company is required to offer prompt, honest and complete communications. The company and all of its representatives must respond to your communications within 15 calendar days with a complete response based upon the facts that are known.
Finally, be aware that your insurance company is required to have a fair claims process. Unless it is specified in your policy, you do not have to use the forms that are provided to you by your insurance provider in order to make a claim. You can create a list of losses on your own if you need to. In addition, insurers are not able to ask for unreasonable proof of loss. If you provide photographic evidence or video of items that you lost, insurers are not able to ask you to provide additional information.
If you are looking for state specific Professional Liability Insurance quotes, costs and information: California Professional Liability Insurance, Colorado Professional Liability Insurance, Delaware Professional Liability Insurance, Florida Professional Liability Insurance, Illinois Professional Liability Insurance, Kentucky Professional Liability Insurance, New Jersey Professional Liability Insurance, New York Professional Liability Insurance, Oregon Professional Liability Insurance, Pennsylvania Professional Liability Insurance, Texas Professional Liability Insurance, Washington Professional Liability Insurance.