Professional Liability Insurance, also referred to as Error & Omissions Insurance, offers a business protection from professional mistakes. Any business that offers professional services or advice should consider professional liability insurance in the event of a lawsuit for negligence or undelivered services, because sometimes we make mistakes. When signing a contract with a client, you are bonded to provide the services expected meeting a client’s expectations. At times your business may be required to have professional liability insurance to sign a contract. This insurance will give you peace knowing if there is an issue with a client, your business will be safe from the impact of a lawsuit.
What It Covers:
- Attorney fees and court costs and settlements—your business is covered in the event of a lawsuit from a client, regardless of fault.
- Work Mistakes—if your business makes a mistake that ends up costing your client money, then your business is covered if you must pay for the client’s losses.
- Negligence/Undelivered Services—if your work does not meet standards, such as giving incorrect advice or you did not finish work that was supposed to be completed by a specific time, then you are covered if a lawsuit ensues.