Professional Liability Insurance

If you provide a service to a customer, professional liability insurance protects you and your company from lawsuits claiming errors and omissions in the provision of those services.

How much will the right insurance cost you? Click here to find out.

Why Might I need Professional Liability Insurance?

If your company provides professional services, you will need professional liability insurance to cover any error and omissions that may cause non-bodily harm to your client. While General liability insurance covers you in the event of physical property damage, it will not protect you against claims of malpractice or error which result in financial loss for your clients or customers.

Examples of companies that need professional liability insurance:

  • Accountants, Lawyers, Doctors
  • Tech Support, Technology Repair, Web Design
  • Auto Repair, Property Maintenance, Construction
  • Business Consultants, Financial Advisors, Investment Experts
  • Software and IT
  • Engineering and Technology Companies
  • Information and Educational Companies

Some Real Scenarios Requiring Professional Liability Insurance Protection

Are employers required to purchase workers comp insurance?
  • A software developer is sued when, during the execution of a contract to build an Internet application for a company, the developer is allegedly negligent in the staffing of the project, which resulted in an alleged breach of contract.
  • A client contracts with a software consultant to develop a software system. The contract contains specific benchmarks for speed and other requirements. These benchmarks are not reached, allegedly as a result of the consultant’s negligence. The consultant is sued for loss of profit due to negligence, breach of contract, and negligent misrepresentation.
  • A design error causes an MRI machine to be rendered inoperable, allegedly causing loss of profit to the hospital.

What Should I look for in Professional Liability Insurance?

  1. Coverage that includes legal defense costs (including court costs) for any judgments against you.
  2. Covers W2 employees and 1099 subcontractors so all your employees are covered.
  3. Personal injury coverage to protect against against claims of libel, slander and invasion of privacy.
  4. Coverage for allegations of copyright infringement and intellectual property infringement.
  5. Worldwide coverage from suits brought in the United States.

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