Professional Liability (Errors & Omissions) Insurance

Business owners providing services should seriously consider having Professional Liability insurance also known as Errors and Omissions.

Professional Liability insurance provides protection against claims that the policyholder becomes legally obligated to pay as a result of an error or omission in his professional work. Also known as Errors and Omissions insurance, this type of professional liability insurance is critical to your business. E&O insurance responds to claims of professional liability in the delivery of your technical services. Allow Gillman Insurance to customize an Errors and Omissions (E&O) insurance policy for you that is affordable and effective.

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Professional Liability Insurance is Critical to Protect You and Your Business

Professional Liability Insurance (Errors and Omissions Insurance) is your most critical coverage. Professional liability coverage protects you against loss from a claim of alleged negligent acts, errors or omissions in the performance of your professional services. This might include loss of client data, software or system failure, claims of non-performance, or negligent oversell.

Be sure your professional liability policy includes the following key features:

• Coverage includes legal defense cost. Professional liability insurance will pay for any resulting judgments against you including court costs up to the coverage limits on your policy.
• Coverage extends to both W2 employees and 1099 subcontractors. Coverage should protect your company from claims resulting from the work done by 1099 subcontractors on your behalf. (It is important to note that 1099 personnel need their own errors and omissions insurance because your policy does not defend them if they are sued separately or in addition to you.)
• Optional coverage for allegations of Copyright Infringement and Intellectual Property Infringement. Intellectual Property Infringement coverage protects you against claims alleging copyright infringement. Software, systems or processes are some of the most commonly known "intellectual properties."
• Personal Injury. Personal injury protects you against claims of libel, slander, and invasion of privacy.
• Worldwide coverage if the suit is brought in the USA.

This coverage protects your business against malpractice, errors, negligence, and omissions. Depending on your profession, it may be a legal requirement to carry such a policy. Doctors require coverage to practice in certain states like Georgia. Technology consultants often need coverage in independent contractor work arrangements.

Q: Do I Need Professional Liability Insurance?

Professionals that operate their own businesses need professional liability insurance in addition to an in-home business or businessowners policy. This protects them against financial losses from lawsuits filed against them by their clients. The following professionals should have Professional Liability Insurance:

• Accountant / Financial Advisor
• Architect
• Engineer
• Doctor / Physician / Nurse / Medical Professional
• Dentist
• Lawyer / Attorney
• Personal Trainer
• Banker
• Consultant
• Teacher / Educator

These professionals are expected to have extensive technical knowledge or training in their particular area of expertise. They are also expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they cause to another person or business. When liability is limited to acts of negligence, professional liability insurance may be called "errors and omissions" liability.