Professional Liability Insurance Information
What is professional liability insurance?
This specialty insurance type is also known as errors and omissions insurance. It protects you as a business owner against lawsuits arising from mistakes you may make, negligence, incomplete work, missed deadlines, or work considered to be low quality. In all these situations, the customer has to experience financial or other harm.
Examples of What is Covered
Example 1: One example is when CPA’s make typographical errors in numbers that place a financial burden on customers that they would not have had otherwise. Example 2: Another example involves printing for a bank grand opening event. Let’s say, the printing company was late with printing of flyers and banners for the event and did not complete the job in time to be used at the grand opening. Example 3: A commercial construction firm fails to meet Tennessee code when building a swimming pool for a new hotel in Downtown Nashville. A claim could be filed by the client and professional liability insurance would kick in to protect the insured business.
The population growth in Tennessee has sparked numerous business relocations and new start-up businesses. Business insurance is always an important consideration as it protects a business from losses not covered by a general liability policy, such as defending lawsuits for errors and omissions. Professional liability insurance is essential for those businesses who provide advice for a fee, such as consultants, website content writers, technology firms, lawyers, and brokers, to name a few.
Professional liability insurance (PLI) is also referred to as professional indemnity insurance (PII). It protects individuals and companies from assuming the full cost of defending a lawsuit that claims negligence. Claims such as negligence or errors and omissions are not customarily covered under a business’ general liability insurance policy. For this reason, professional liability insurance is critical for those who provide a service or advice for a fee.
Who Needs Professional Liability Insurance
Which professions and business types need professional liability insurance? Any service-oriented business who provides a service or advice for a fee falls into this requirement. One commonly thinks of an attorney or accountant for this type of insurance, yet the insurance need applies to architects, technology firms, and even event planners. Depending on the profession, professional liability insurance may take on different forms and names. In the medical field, it is commonly called malpractice insurance. For attorneys, brokers, technology firms, or accountants, it is often called errors and omissions i or E&O insurance.
List of Businesses Who Need to Carry Professional Liability Insurance
The following is a partial list of business professionals with expected expertise in their fields who should carry this insurance.
Have a question? Ask our business agents at (615) 829-8457
IT and Technology Companies
CPAs and Tax Professionals
Skilled Trades Contractors
Hair Stylists & Nail Salons
Photographers and Videographers
Rise in Errors and Omissions Lawsuits
The number of liability lawsuits against professionals is on the rise. The risk of facing a lawsuit as a fee for service type business is much higher than it once was. Such lawsuits can mean financial ruin both professionally and personally, including the loss of cars, homes and careers. Professional liability insurance helps with the financial burden of these events.
Benefits of Professional Liability Coverage
Any professional who provides a service, expertise or advice to clients for a fee can benefit from coverage against liability lawsuits. Even with quality employees and risk management practices in place, people still make mistakes. A general liability policy may not cover mistakes that could be made. Professional liability insurance will protect the business and its finances if such an event arises.
Free Quote from Local Agency
Our local agents at Montgomery & Associates Insurance & Financial Services will evaluate your business to determine its unique insurance needs and find you the professional liability policy with the needed coverage, avoiding excess. Our agents provide multiple quotes as we do business with multiple carriers. That way you can get the best coverage at the best rate. Call us if you have questions or want to get started. Our agents are dedicated to helping you acquire get the protection you need.
Call Our Agents (615) 829-8457
Professional Liability Insurance Quote Forms
Looking for coverage? Click any of the following links to submit a quote for quick, accurate and affordable rates.