What is professional liability insurance?
Professional liability insurance is a coverage that protects business professional in the work place, such as attorneys, consultants and accountants from claims regarding negligence or misconduct related to the services provided by the. Professional liability insurance is also referred to as Errors and Omissions insurance (E&O).
Experts in these fields specified above typically require professional liability coverage because the services that they provide can lead to minor mistake with major impacts, such as financial or indirect loss for their clients. Incidents like this typically excluded from other business insurance coverages.
What does professional liability cover?
Claims of actual or alleged negligence that arise from providing professional services are covered in a professional liability insurance. These include giving incorrect advice, an omission or failing to deliver a service and cover damages and defence costs up to your policy limits, regarding of whether a mistake was made.
An example of this is when an accountant professional liability insurance could cover the legal and settlement costs if a claim from a client was made that the accountant had filed the taxes incorrectly, causing them to lose a lot of money.
Professional liability policies are usually written on a claims-made basis and so coverage is only available to claims filed during the policy period. The coverage can protect against claims that arise from services provided in the past and for work performed anywhere in the world.
It is essential to understand that professional liability will not cover any claims related to injury to others or any damages to their property. This type of protection is offered by general liability.
Who needs professional liability insurance?
Any business that sells a type of professional service or gives advice to clients should consider taking out professional liability insurance to protect themselves against lawsuits that arise from their mistakes.
Some states require by lar that certain professionals have this insurance taken out already before they can do business, such as lawyers. Clients may also prefer or require that a business must have a certain amount of professional liability covered as part of the business contracts.
A following variety of business professionals need professional liability insurance:
- Real estate agents
- Insurance agents
- Home Inspectors
What does professional liability insurance cost?
In 2020, the national average cost for professional liability insurance through the Firefly Business Program was $46 per month. While this information helps estimate costs, it’s not customized to your unique situation.
Learn which attributes of your business impact the cost of professional liability insurance and discover ways to reduce your premium.
Start a professional liability insurance quote
The fastest way to get into contact with us for more information or to take out a professional liability insurance is to start a quote online. You can call to speak to us directly with one of our agents, who have the knowledge and experience to help you. They will aid in identifying which professional liability limits best match your business and policies can be personalized in order to meet both your needs and budget.
Yes, there is no difference between the two, both terms are interchangeable.
Regardless of whether a claim made against you has a serious purpose or value, or not, a professional liability coverage would defend you against a lawsuit claiming your professional negligence.
General liability, when taken out, protects against any ‘third-party’ damages for which you are held responsible, such as, bodily injuries to others or damages to their property. Professional liability protects you from claims of neglect and professional errors.
Yes, Firefly can help you get business insurance, including professional liability, in all states except Hawaii.