Professional Liability insurance protects businesses and professionals from losses related to wrongful acts (negligent acts, errors or omissions) during the rendering of professional services.
The most common types of Professional Liability insurance:
- Medical or Dental Malpractice
- Legal Malpractice
- Architects & Engineers E&O
- Accountants E&O
- Printers & Publishers E&O
- Miscellaneous E&O – coverage may be custom-tailored to any type of professional exposures in existence
Who Needs Professional Liability Insurance?
Anyone engaged in professional services needs E&O coverage in order to protect them from allegations of wrongful damages. Commercial General Liability coverage is not sufficient, because it excludes errors and omissions.
In a 2015 report by the Insurance Information Institute, it was shown that $1.5-4.7M was the average amount spent on defense and settlement expenses for professional liability claims. If you or your business possesses a professional exposure, you may be surprised by the availability of competitive prices for the insurance coverage. Each policy may contain important coverage considerations, so it’s important to carefully review each policy detail and be sure it matches your needs.
The most common coverage gap is mis-classification (or misrepresentation) of the professional exposure.
When switching from one carrier to another, be sure the Retro date is matched by new carrier. Also, when initiating coverage, always try to obtain “full prior acts” coverage – this will ensure that any past activities are covered if they generate a claim later.
Bodily Injury or Property Damage
Most E&O policies exclude claims from BI or PD, but you may want to alter the policy to include “consequential” bodily injury or property damage, depending on your risks.
Professional Liability Insurance, clearly, won’t protect you from every type of exposure your business may face. As a result, there are other types of insurance designed to meet your entire needs.
Here are a few:
- Employment Practices Liability
- Directors & Officers Liability
- Fiduciary Liability
- Business Auto Liability
- Workers Compensation
- Cyber Insurance
- Flood Insurance
- Commercial Umbrella
- Surety Bonds
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