What is Professional Liability

If you’ve been in business for a while, or even if you are an entrepreneur never make two incorrect assumptions.

1)     I’ll never be sued because I haven’t been sued yet

2)     Even if I do get sued I’ll have coverage under my general liability policy

As the U.S. continues to move away from a manufacturing economy and toward a service-based economy professional liability insurance is becoming more and more important. The primary reason for professional liability coverage is that a typical general liability insurance policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim.  Varying endorsements, policies, and forms of insurance cover employers, public and product liability, but various professional services and products can give rise to legal claims without causing any of the specific types of harm covered by such policies. Common claims that professional liability insurance covers are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

Professional liability insurance more commonly known as errors & omissions (E&O) is a form of liability insurance which helps protect professional advice and service providing individuals and companies from bearing the full cost of defending against a negligence claim. It will also pay out if damages are awarded in a civil lawsuit. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, an error or omission in the service or product sold by the policyholder. 

Don’t make the mistake of leaving a gap in your insurance needs. Just because it hasn’t happened, doesn’t mean it can’t happen. Just because you think you are covered, doesn’t mean you have coverage. Take charge of your business, and protect it completely. 

For more information on Professional Liability Insurance, feel free to contact me. My time is always free to ask questions.

Geoffrey Cuneo

301.863.6625 ext 340

www.rwoinsurance.com