Professional liability insurance is a specialized type of insurance protection for individuals who are involved in the “professions”, such as physicians, attorneys, contractors, certified public accountants or officers of corporations. Liability can arise in these professions from a failure to use care (i.e. negligence) according to the degree of skill expected by the professional. So this type of insurance protects the insured from his or her responsibility for bodily injury or property damage to others arising out of negligence or nonperformance
It is also known as Errors & Omissions Insurance. Companies that perform services for others can make mistakes, be misunderstood, overlook something important, or mistate a fact. When a client sues a business due to an error or omission in providing a service, E & O coverage can provide protection. Court settlements can rapidly escalate and punitive damages can be tripled in some cases. Can your company absorb a $100,000 lawsuit? In addition to the monetary costs, what is the value of lost time, hassle, stress, or damaged reputation resulting from a professional liability lawsuit?
Keep in mind that just because your company doesn’t do anything wrong, that doesn’t prevent someone from suing you. Even meritless lawsuits must be defended, and that can be costly.
Don’t risk letting a lawsuit financially ruin your company. Call Beaulieu Insurance today for more information and a free quote.