Professional Liability?
Your clients trust your knowledge, expertise, and professional advice. Even when you do everything right, misunderstanding, mistakes, or allegations of negligence can lead to costly legal claims. Professional Liability insurance helps protect your business from claims related to errors, omissions, negligence, or failure to deliver professional services.
Whether you’re a consultant, accountant, engineer, architect, technology professional, real estate professional, healthcare provider, or another service-based business, Professional liability insurance can help protect your finances and your reputation when a client alleges that your work caused them financial harm.
At Get Help With Insurance, Inc., we work with a lot of top-rated insurance companies to help businesses find Professional liability coverage that fits their industry, services, and level of risk. We’ll help you compare options, understand your coverage, and select a policy that supports your business as it grows.
Your expertise is one of your greatest assets. Let us help you protect it with insurance designed for today’s professional risks.
Contact us today for a free Professional Liability Insurance quote and learn how the right coverage can help protect your business and your reputation.
WHO NEEDS PROFESSIONAL LIABILITY INSURANCE?
- Consultants
- Accountants and Bookkeepers
- Architects and Engineers
- IT Consultants and Technology Firms
- Marketing and Advertising Agencies
- Real Estate Professionals
- Insurance Agencies
- Healthcare Professionals
- Finance Advisors
- Business Coaches
- Designers
- Other Service-based Businesses
- Alleged errors and omissions
- Claims of negligence
- Legal defense costs
- Settlements and judgements (subject to policy terms)
- Missed deadlines or failure to deliver professional services
- Misrepresentation claims
TECHNICAL ERRORS AND OMISSIONS
A Tech E&O policy can cover costs for legal defense, settlements and breach of contract allegations. Attorney fees for court cases or settlement negotiations outside of a court can add up quickly even when your business is not at fault. Many businesses large & small do not have the funds to cover these expenses. For example, suppose a company creates software for organizing documents. If this software caused their client’s systems to crash and they can no longer do business, the software company could be at fault. In this circumstance a lawsuit could potentially ruin your business without a Tech E&O policy in place. With a properly written Tech E&O policy in force coverage could be provided for defense costs, settlement expenses and potentially lost income during the court case. The Tech E&O policy is there to take care of all the risks arising from technology related services. The Most common types of losses in a builders risk claim include theft, fire, vandalism, property in transit, and ordinance of law.
Example: A company is hired to design a fully functional interactive website for a communication company. After 6 months, the developer fails to deliver the website as promised in their contract and the company must hire another developer to finish the website. The communication company sues and claims damages of $3,000,000 which includes the increased cost to complete the website, lost profits because of the delay in the delivery and the market value of the website.
- Coverage can include:
- Defense outside the limit available
- Limits available up to 15 million (higher limits available through excess)
- Breach of contract coverage available
- Can combine the Tech E&O, Miscellaneous E&O, Technology Products, General Liability, and Cyber Liability on one policy
- Full prior acts coverage available even for first time buyer
- Coverage for mental anguish and distress
- Additional insured status available
- Covered services can include Miscellaneous E&O exposures
- Deductibles start at $0
- Risk management services available to policy holders for no charge
- Media and intellectual property coverage built into policy forms
complex actual claims
Optometrist Error
An optometrist prescribes eyeglass lenses with an incorrect astigmatism correction. While wearing the glasses, the customer falls down stairs and suffers an injury because his vision is distorted by the incorrect prescription.
A claim is made for the customer’s medical expenses to treat the injuries, including pain and suffering, for an amount of $20,000.
COPYRIGHT INFRINGEMENT
An advertising agency developed a campaign for a major client that involved the production of a series of television commercials. The agency subcontracted the commercial’s background music to a local freelance musician. After the commercial aired, another musician claimed the music used in the commercial had been copied without her permission from a work she had previously recorded.
The agency and its client were sued in a $100,000 copyright infringement claim.
What does Professional Liability Not cover
Employee Injury in the event workers experience work-related injuries or fall ill, their medical expenses will be covered by workers’ compensation insurance.
Damage to business property that is stolen, damaged, lost or destroyed are covered by the Business Owner Policy.
Employee discrimination lawsuits is covered by Employment Practices Liability insurance (EPLI). It is designed to cover any legal costs associated with wrongful termination, harassment, or discrimination.
Vehicles used in the business are covered by commercial auto policies. You should make sure you have hired and non-owned auto coverage on your General Liability or Business Owner Policy when personal vehicles or leased vehicles are used by the business.
Contingent bodily injuries of a customer or client indirectly linked to your professional service are covered by Product Liability.
GROOMER NEGLIGENCE
A groomer nicks a tendon in a dog’s leg while grooming the dog with a shaver. A claim is made for the veterinary care expenses associated with the dog’s injury.
pOOR pLACEMENT DECISION
A placement agency was hired to locate a qualified candidate to run a client’s human resources department. The agency recommended a candidate with management experience but failed to recommend a candidate with a human resources background.
After the client hired the recommended candidate, it later terminated the person for lacking proper qualifications. The client hired an attorney to collect damages incurred as a result of the negligent placement. In addition, the client had to retain an outside human resources provider to perform these functions while a replacement was found. It cost over $175,000, including defense and settlement costs .
BOOKING ERROR
A travel agent booked a trip around the world for an elderly couple celebrating their 50th wedding anniversary. The husband, who purchased the trip, mentioned that his wife needed handicapped access for the entire trip, which included hotel stays. He called to check on the planning of the trip multiple times and reconfirmed the handicapped access. When the couple arrived in London, they discovered that their hotel had no handicapped access because of the age of the building. The husband was furious and called the agency to demand a refund. The agency rebooked the London leg of the trip and reconfirmed all of the couple’s other accommodations. This cost the couple an additional $10,000 as the trip was being changed at the last minute. They demanded reimbursement for this charge. The additional expenses exceeded $15,000.
The Travelers Indemnity Company and its property casualty sample claims.
This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations. © 2021 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. BSLSS.0099-D Rev. 3-21
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