Professional Liability insurance is also known as errors and omissions insurance (E&O). While it sounds like any working professional may need one, it’s a little more specific than you might think.
Professional liability insurance protects you in the event that a client is harmed from professional advice and services, which protects companies from negligence claims made by clients. A professional liability policy will help cover the cost of defending a lawsuit against negligence whether it’s alleged or not and any damages awarded.
As an example, if a financial advisor gave advice to a client that may be a costly decision, they may be held accountable for making an error. Even if unintentional, that person could be subject to a lawsuit. Having E&O insurance could save him or her a lot of money in the long run.
What Kinds of Businesses Need an E&O Policy?
Professions that commonly need professional liability insurance include accountants & CPAs, general contractors, charities and other non-profits, etc.
Different professions have different types of professional liability; insurance agents and lawyers need Errors & Omissions Insurance (E&O); physicians need Medical Malpractice Insurance. It doesn’t cover things like copyright, patent, or trademark infringement, illegal acts, property damage, and more. You can learn more about insurance that covers those types of claims in our business insurance blog series. If you’re unsure whether your business should have coverage like this, contact us and we will help walk you through all options available to you.
Founders Insurance Group’s experienced agents specialize in helping various businesses engaged in professional services. Contact us today and one of our licensed agents will evaluate the risks associated with your business and help you get the professional liability insurance that fits your business and industry in Woodstock, Georgia.