A Basic Professional’s Guide To Shielding Yourself From Liability

This is probably going to come as a surprise to most, but doctors aren’t the only professionals who need professional liability insurance.

If your expertise, or a unique skillset, forms the basis for your business, you comprise part of the ever-growing E&O Insurance.Orange County CAsector described, rather uncreatively, as Professionals. You’re also vulnerable to a unique set of lawsuits that the average laborer is not. Professional liability insurance can help protect you in those instances.

Here’s a deeper explanation of some of the most widely used lines of coverage.

 

 

E&O Insurance

Because mistakes are an inevitable part of operating a business, and because their consequences can sometimes be quite dramatic, errors and omissions insurance is becoming a vital stopgap. The primary function of an E&O policy is to extend your liquid, physical and future asset protection beyond the coverage found within your primary business insurance coverage’s. Legal liability from an unintentional mistake that occurred in the course of doing business makes you responsible for paying the party who filed the civil suit.

D&O Insurance

D&O insurance, also known as director and officer insurance, adds another layer of liability coverage, which shelters executives from legal fees extending from the defense of regulatory allegations.

Contrary to popular belief, D&O insurance does not encourage malfeasance, because it excludes deliberate acts of fraud and intentional illegal activity.

Nearly a third of the executives in a recent, nationwide survey were sued. What that means is that D&O insurance, once a complementary coverage, is now becoming an essential tool.

For further information about professional liability insurance, and to discuss which lines of coverage suit the nature of your work best, contact the experts at Peter Green Insurance.