What is Professional Liability?
An old adage states that we are all human. No one is perfect. We all make mistakes. The problem is: if your client or customer thinks a mistake in your professional services caused a financial loss, they can sue you. Professional liability insurance helps cover you and your company if you make a mistake in your professional services. This coverage is also known as errors and omissions (E&O).
What does it cover?
- Negligence
- Misrepresentation
- Inaccurate advice
Even if you didn’t do anything wrong, your client can still sue your business if they believe you made a mistake. Without coverage, you’ll have to pay expensive legal defense costs out of pocket.
It’s important to remember that professional liability insurance doesn’t cover everything.