Professional Liability Insurance
Professional liability insurance, sometimes referred to as errors and omission insurance or professional indemnity insurance, generally protects businesses when employees make mistakes.
If a business does not adequately execute the services they promised, a customer may bring a claim against the company for negligence. The claim could refer to something done improperly or something that should have been done but wasn’t, resulting in a financial loss to the customer.
Overall, professional liability coverage ensures your business is protected if an upset client or customer were to file a lawsuit.
Do You Need Professional Liability Insurance?
You should consider obtaining a professional liability policy if:
- Your business often gives professional advice to clients
- Your business provides a service to customers
- Your business advises clients in contractual agreements
For example, if you are a physical therapist, you may run into a situation where a client claims that you caused tissue damage during one of their sessions. Alternatively, as an attorney, you may make a mistake on a contract that ends up causing issues for the client. If they were to file an official claim in either of these instances, your professional liability coverage would cover legal fees and other damages associated with the claim.
Professional liability insurance is often partnered with general liability coverage. General liability policies do not cover negligence, malpractice, and mistakes; therefore, it often makes sense to carry professional liability coverage as well.
An experienced commercial insurance expert can help you decide whether your business would benefit from professional liability insurance. Please contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your business insurance coverage options in Longmont, CO, and our neighboring communities.
We give out $25 gift cards for referrals that become our insurance clients.
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