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Get professional liability insurance quotes, cost & coverage fast. Also known as errors & omissions insurance (E&O), it covers legal costs when a client sues you over your services or advice including negligence, work mistakes, & undelivered services.

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 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 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 professional liability insurance coverage, you won’t have to pay for those legal expenses out of your own pocket.

Does My Business Need 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 professional liability insurance include:
  • Medical professionals
  • Architects
  • Real estate agents
  • IT professionals
  • Accountants
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 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, 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. Professional liability insurance will help to cover the expenses that are associated with this type of lawsuit. Then there is errors and omissions insurance for nonprofits, which falls under the professional liability umbrella.

What 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 Professional Liability Insurance Cost?

How much does 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

Get A Professional Liability Insurance Quote

Not all professional liability insurance polices are the same. If you own or are starting a business, let one of our expert agents take a look at your current business policy. In most cases we can save you money and offer you better policy options than you currently may have.
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