Why You Need professional liability (e&o) Insurance

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Spot On Coverage

PL covers you for:

Lawsuits
Judgments
Legal Fees

Protection Against Lawsuits:

Professional Liability Insurance covers claims arising from errors, mistakes, or negligence in delivering professional services. This includes instances where clients allege that services didn’t meet expectations, cause financial losses, or harm them. Without this insurance, businesses might face significant expenses for legal costs, settlements, or judgments from these claims.

Maintaining Professional Reputation and Trust:

A lawsuit or claim for professional negligence can damage a business’s reputation and erode client trust. Professional Liability Insurance covers legal defense costs and damages, helping businesses to safeguard their reputation and retain the trust of clients, partners, and stakeholders.

Industry Requirements:

Lots of clients, especially in fields like consulting, finance, insurance, or healthcare, ask contractors or service providers to have Professional Liability Insurance before working with them. Having this insurance shows a dedication to professionalism, quality, and accountability. It can boost credibility and competitiveness in the market.

Risk Management:

For businesses providing professional services like consulting firms, law firms, accounting practices, insurance agencies, or tech companies, Professional Liability Insurance is key for effective risk management. It helps lower the financial risks associated with lawsuits or claims alleging professional mistakes, omissions, or failure to meet industry standards.

Standard Professional Liability (E&O) Insurance Coverages:

Defense Costs:

As a business owner, an action or recommendation you make can lead to a negative outcome for a client, potentially resulting in a lawsuit and subsequent legal defense costs. Professional Liability Insurance covers these defense costs.

Negligence:     

  Negligence occurs when a company or individual fails to show reasonable care in their actions, resulting in harm to another party. Professional Liability Insurance covers resulting lawsuits.  For example, if a restaurant fails to maintain proper sanitation practices, leading to a foodborne illness outbreak among its customers, resulting lawsuits would be covered.

Temps & Contractors:   

In cases where your business is being sued by a client due to the actions of a temporary or independent contractor, Professional Liability Insurance protects against claims, errors, or negligence.

Past Services:

Claims can arise against an individual or business even after a project is completed. Most Professional Liability Insurance policies start coverage from the policy’s effective date, but they also provide coverage for past mistakes up to a retroactive date. For example, if a consulting firm purchases E&O insurance with a policy effective date of January 15, 2024, and a retroactive date of January 15, 2021, any claims related to errors made before January 15, 2021, wouldn’t be covered.

Claims & Damages:

In a claim for damages, compensation (typically money) is awarded to a person or organization to cover losses or injuries. Professional Liability Insurance covers these claims.  

Personal Injury:

Professional Liability Insurance protects against non-physical injury claims that may arise while performing your professional services, which includes libel, slander, defamation, invasion of privacy, and emotional distress.

Copyright Infringement:

Copyright Infringement occurs when protected work is used without the copyright holder’s permission, which includes plagiarism, unauthorized reproduction of copyright material, and online piracy.  Professional Liability Insurance covers claims related to copyright infringement.

Potential Savings to Explore:

Insurance discounts can differ depending on the insurance provider you select.  It is important to note that not all carriers offer the same discounts.

Flexi-Bundle™ & Save:

Flexi-Bundle™ Discount:  Combine up to four insurance products and select from up to four insurance carriers.

Frequently Asked Questions

General Liability Insurance covers claims where your business is at fault for bodily injury, property damage, or personal and advertising injury. 

Professional Liability Insurance, on the other hand, protects businesses and individuals against claims made by clients for economic damage resulting from wrongful acts. Many businesses can benefit from having both coverages.

Professional liability insurance, also known as errors and omissions insurance (E&O insurance), protects your business in the event of a lawsuit alleging negligence in the performance of your services, even if no mistakes were made. 

You should consider professional liability insurance coverage if your business:

  • Provides a professional service.
  • Regularly gives advice to clients.
  • Is requested by a client to have professional liability insurance to complete a contract.

Professional Liability Insurance does NOT cover:

  • Bodily injury and property damage liability.
  • Fraudulent acts.
  • Employment matters.
  • False advertising.
  • Failure to protect or breaches of personal information that was in your car, custody, or control.

There are a range of Professional Liability Insurance Limits available.  An Insurish agent will guide you on determining the appropriate coverage for your business needs. Limits typically start at $250,000 and go up to $2,000,000. If you have any questions, please contact an Insurish agent.

Professional Liability Insurance is typically not required by law. However, clients may require you to carry Professional Liability Insurance for high-cost projects to ensure financial protection in case of a lawsuit.

You have two payment options:

Option 1:  Click the Carrier tab, scroll to locate your carrier. Most carriers accept online payments via check, credit card, or ACH.  Click on your carrier’s name and proceed to make your payment.

Option 2:  Click the Customer Center tab. Scroll down to find the Input1 icon. Input1 offers digital payment options, including ApplePay and eWallet.  Click on the Input1 icon, log in, and make your payment. 

Report The Claim by Phone:

  • Click on the Carrier tab.
  • Locate your insurance carrier.
  • Use the carrier’s claims phone number to report the claim.

Report The Claim Online:

  • Click on the Carrier tab.
  • Use the carrier’s claims website link to report the claim online.

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If you have questions, you can call, text, email, or live chat with a real expert at Insurish who is standing by to help. No matter how you contact us, we will get back to you immediately. For help, click the Contact Us tab.

We offer insurance solutions for all your personal needs like auto, home, life, health & more. We also offer products for all your business needs, like liability, property, trucks & more. We don’t stop there! We also offer a wide array of car care and safety & security products.

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Please Note:

At Insurish, we provide general information on insurance products to help you grasp their different aspects. It’s important to note that this information isn’t an insurance policy and doesn’t pertain to any specific carrier’s policy. It doesn’t alter any provisions, limitations, or exclusions expressly stated in an insurance policy. Descriptions of coverages, discounts, and features are concise. For a comprehensive understanding of specific policy details, we recommend reading the applicable policy and consulting an Insurish agent. Coverages and features vary by insurer and state and may not be available in all states. Coverage for accidents or losses depends on the terms and conditions of the actual insurance policy. References to premiums, losses, deductibles, and costs are illustrative and may not apply to your circumstances. Insurish is not liable for the content of third-party sites linked from this page.