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.
Because professionals are expected to have extensive technical knowledge ortraining in their particular area of expertise, they are also expected to perform 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.
E&O insurance responds to claims of professional liability in the delivery of your technical services and is critical to your business.
Doctors and lawyers have long been regarded as “professionals” by our society, due to their special technical skills, education, and practical experience. The nature of their work is such that the public has a high level of trust and expected proficiency of these practitioners.
But professional liability insurance is not only for doctors and lawyers anymore!
In prior decades, the definition of a “professional” expanded to include a number of other occupations in which special knowledge, skills, and close client relationships are paramount. Examples of these are accountants, architects, bankers, clergy, engineers, insurance agents, and stockbrokers. More recently, this list has expanded even more. This trend parallels the transformation of American business from a manufacturing-based economy to a service-oriented economy, and now more and more occupations are regarded as professional occupations.
With the well publicized nature of our litigious society, coupled with the expanded base of service businesses, the companies and staff in the service economy are subject to greater exposure to malpractice claims than ever before. Indeed, not only physicians and attorneys are being sued by their clients for malpractice, many other professionals are now at risk!
Allow us to customize an errors and omissions insurance policy for you that is affordable and effective