Business owners have at their disposal multiple insurance coverage options to protect their company in the case of a liability or claim made against them. For those businesses which provide professional services and strategic advice as their commodity to their customer, professional liability insurance is a sound insurance option. Also called errors and omissions insurance, professional liability insurance provides protection when a customer brings a claim for perceived lack of performance or negligence. Such business types which benefit from professional liability insurance include independent contractors, financial advisories, technology companies, consulting firms, and legal offices, among others.
Protections Offered by Professional Liability Insurance
Protections offered under professional liability insurance include financial protection and reimbursement for claims resulting from libel or slander, negligence, copyright infringement, and other areas of perceived professional misconduct. Financial protections of a professional liability insurance policy may extend to cover legal costs, reputation repair, and operational loss due to a filed claim. Additionally, professional liability insurance may cover damages that arise from erroneous or misinformation supplied to a customer which result in a financial damages claim.
Professional liability insurance is not meant to protect the fraudulent business; however, and does not offer protection when extreme negligence, dishonest acts, false advertising, and other illegal business practices are committed.
Do You Need Professional Liability Insurance?
Understanding the specific benefits of professional liability insurance for your business and how a policy can protect your company’s future is best achieved by enlisting the assistance of an insurance industry professional with expertise in the particulars of professional liability insurance. An insurance industry professional can explain what coverages you will receive, which claims are not protected, and the financial impacts as it relates to your specific business needs.
To receive a professional liability insurance consultation and no-obligation policy quote, call us today at 714-258-2800 or 888-725-7776.