If you’re a business owner or service provider, you can be sued for negligently performing services even if you haven’t made a mistake. You can protect your business by carrying Professional Liability Insurance, also known as errors and omissions insurance (E & O insurance) or professional indemnity insurance.
Businesses that provide a service or offer advice to clients would be wise to have this insurance protection. There’s a lot of subjectivity that goes into business, and a lot of unpredictability, too. A client may try to hold you liable if they don’t get the results they expect, even if you did nothing wrong or the client fails in the implementation of your recommendations.
And, of course, to err is human. If you have made a mistake, that can be even more costly to correct. Having a Professional Liability policy can help keep your company intact. In large scale cases, a business would also benefit from having Directors & Officers Insurance, which is payable to a company’s directors and officers to cover losses from defense costs and judgments.
Professional liability claims can go to court. One case in 2009, Estate of Tinervin v. Nationwide Mutual Insurance Company, stemmed from a medical assistant misplacing a lab report and not showing results to a patient. The owner of the business is ultimately responsible for this mistake, but the damages will be covered by a Professional Liability Insurance policy.
As an independent agency, we have access to multiple carriers. We do all the research and comparison shopping for you, helping you lock in the most competitive prices while getting a plan that best fits your needs. We take a data-driven approach to find the perfect policy so that you have the coverage you need without paying for the things you don’t.
What Does a Business Owners Policy Cover?
Do I Need Directors and Officers Insurance?