Professional liability insurance also called , errors and omissions insurance (E&O; insurance), protects you if a client claims that your services caused them to suffer a financial loss. While general liability insurance is primarily focused on property damage or bodily injury,
Many professional services companies choose to purchase E&O; insurance policies, which are typically issued in increments of $1 million and have per-claim deductibles ranging from $1,000 to $25,000.
Some insurance companies are reluctant to issue professional liability insurance policies, while others specialize in policies for specific professions. Because we have access to multiple insurance carriers and work with a wide range of small business professionals, we know how to find professional liability insurance policies (E&O insurance) coverage that is comprehensive and yet fits your small business’s budget.
It’s important to note that almost all professional liability insurance policies are sold on a “claims-made” basis. This means that the insurance only covers work performed while the policy is in force, and for claims actually filed during the term of the policy. If you cancel your professional liability insurance policies (E&O insurance) without arranging for an extended reporting period, your coverage would end, and any claims submitted after the cancellation would not be covered, even though the work was performed while the professional liability insurance policy was in effect.
It’s also important to know that there are exclusions in every errors and omissions insurance policy. Before you purchase professional liability insurance policy, you’ll want to think about the most dangerous threats and professional risks for your business, and look for a policy that covers those specific risks.
We’re happy to help with your assessment. Feel free to call our licensed agents to learn how others in your profession have protected themselves. Or fill in our online application to receive a quote on a professional liability insurance policy that fits your small business’s needs.
How does professional liability insurance protect your business?