Professional Liability Insurance
Protect Your Expertise, Your Reputation & Your Business
When customers hire you, they are trusting you with your knowledge, experience, and professional skills. Even when you provide excellent service, a client or customer may claim that a mistake, error, omission, or failure to perform caused them financial harm.
Professional Liability Insurance, also known as Errors & Omissions (E&O) Insurance, can help protect your business against certain claims arising from the professional services you provide.
At A-1 Insurance Services Inc, we help professional service businesses understand their exposures and find insurance solutions designed around their specific operations.
What is Professional Liability Insurance?
Professional liability insurance is designed for businesses that provide professional services, advice, expertise, or specialized services to customers or clients.
A professional liability claim may allege that your business:
- Made an error or mistake
- Provided incorrect professional advice
- Failed to provide a promised service
- Failed to meet a deadline
- Made an omission
- Provided negligent professional services
- Failed to meet a professional obligation
- Caused financial loss through a professional service
Even if you believe the claim is unfounded, defending yourself can be expensive.
Professional liability insurance may help with certain covered defense costs, settlements, and judgments, subject to the policy's terms, conditions, exclusions, and limits.
Who Needs Professional Liability Insurance?
Professional liability coverage may be appropriate for many businesses that provide specialized knowledge, advice, expertise, or professional services.
A-1 Insurance Services Inc can help with insurance options for businesses such as:
- Accountants and bookkeepers
- Consultants
- Architects
- Engineers
- Real estate professionals
- Technology and IT professionals
- Software consultants
- Marketing professionals
- Business consultants
- Management consultants
- Designers
- Financial professionals
- Insurance professionals
- Hair stylists and barbers
- Beauticians and cosmetologists
- Audiologists and hearing professionals
- Pet groomers
- Ministers and clergy
- Funeral directors
- Funeral homes
- Cemeteries and crematories
- Other professional service businesses
Coverage availability varies by profession, services provided, business operations, and insurance company.
Errors & Omissions Coverage
Errors and omissions can happen even when you are acting in good faith and doing your best work.
A customer may claim that your business:
- Provided incorrect information
- Made a professional mistake
- Failed to complete a service correctly
- Missed an important deadline
- Provided incorrect advice
- Failed to deliver an agreed-upon service
- Caused financial loss because of a professional error
E&O coverage may help protect your business against certain covered claims arising from your professional services.
Professional Liability vs. General Liability
Professional liability and general liability are designed to address different types of risks.
General Liability
General liability generally addresses certain claims involving:
- Bodily injury
- Property damage
- Premises liability
- Certain advertising injuries
- Other covered business liability exposures
Professional Liability
Professional liability generally addresses certain claims involving:
- Professional errors
- Mistakes
- Omissions
- Negligent professional services
- Failure to perform professional services
- Financial loss resulting from professional services
Many professional businesses need both general liability and professional liability coverage.
Defense Costs
Being accused of making a professional mistake can be stressful and expensive.
Even when you believe you have done nothing wrong, you may need legal representation to defend your business.
Depending on the policy, professional liability insurance may help pay certain defense costs associated with covered claims.
The specific way defense costs are handled varies by insurance policy, so reviewing the policy carefully is important.
Claims-Made Coverage
Many professional liability policies are written on a claims-made basis.
This means the timing of the claim, policy period, and applicable coverage can be very important.
If you change insurance companies, cancel your policy, retire, or stop providing professional services, you may need to consider options such as:
- Prior acts coverage
- Extended reporting periods
- Tail coverage
- Maintaining continuous coverage
Before canceling or changing a professional liability policy, speak with your insurance professional about how the change could affect coverage for future claims.
Contract Requirements
Some customers, businesses, organizations, or contracts require professional service providers to carry professional liability insurance.
You may be required to provide a Certificate of Insurance (COI) showing your coverage.
A-1 Insurance Services Inc can help you review insurance requirements and provide appropriate documentation when available.
How Much Professional Liability Coverage Do I Need?
The appropriate amount of coverage depends on your individual circumstances.
Factors may include:
- Type of profession
- Services provided
- Annual revenue
- Number of clients
- Size of contracts
- Contract requirements
- Potential severity of a claim
- Industry standards
- Assets being protected
We can help you evaluate your business and discuss appropriate coverage options.
Other Coverage You May Need
Professional liability is only one part of a complete business insurance program.
Depending on your business, you may also need:
- General liability
- Commercial property
- Business owner's policy
- Cyber liability
- Workers' compensation
- Commercial auto
- Employment practices liability
- Crime coverage
- Commercial umbrella
- Equipment coverage
- Business income
- Specialized professional coverage
Our goal is to help you look at the entire picture rather than focusing on just one policy.
Why Choose A-1 Insurance Services Inc?
As an independent insurance agency, A-1 Insurance Services Inc can help you explore professional liability options from multiple insurance markets.
We take the time to understand:
- What services you provide
- Who your customers are
- Your business structure
- Your contracts
- Your annual revenue
- Your potential exposures
- Your insurance requirements
We then work to find coverage designed around your specific business.
Protect Your Professional Reputation
Your knowledge, skills, reputation, and business represent years of hard work.
A professional liability claim can be costly and disruptive, even when you believe you have done nothing wrong.
The right insurance coverage can help protect your business against certain professional liability claims and provide greater peace of mind as you serve your customers.
Get a Professional Liability Quote
Contact A-1 Insurance Services Inc today to discuss your professional liability insurance needs.