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Professional Liability (E&O) Insurance
Mistakes happen, and in the professional world, even a minor error can result in costly legal claims. Professional Liability Insurance, also known as Errors & Omissions (E&O) Insurance, protects businesses and individuals against claims of negligence, mistakes, or inadequate work that result in financial losses for a client.
A Professional Liability policy can provide coverage for:
- Legal defense costs
- Settlements and judgments
- Allegations of professional negligence
- Misrepresentation or inaccurate advice
- Breach of contract claims
What Does Professional Liability Insurance Cover?
Professional Liability Insurance typically includes:
Negligence Claims: Coverage for errors, omissions, or mistakes in professional services that lead to client losses.
Legal Fees and Settlements: Helps cover the cost of defending against claims and any required settlements.
Work Mistakes or Oversights: Protection if a mistake in your work leads to a financial loss for a client.
Failure to Deliver Promised Services: Covers claims if you fail to meet contractual obligations.
At McShea Insurance, we tailor Professional Liability Insurance policies to meet the unique risks of your industry, ensuring that your business is protected from unexpected claims.
Who Needs Professional Liability Insurance?
Any business or professional providing advice, consulting, or services should consider Professional Liability Insurance. Common industries that need E&O coverage include:
- Consultants and Business Advisors
- Real Estate Agents and Brokers
- Financial and Investment Advisors
- Architects and Engineers
- Marketing and Advertising Agencies
- Healthcare Professionals
- IT and Software Development Companies
FAQs
Does E&O Insurance cover intentional acts by my employees?
No. Professional Liability Insurance generally does not cover intentional wrongdoing, fraud, or criminal acts by employees. If an employee knowingly engages in misconduct, your policy will likely exclude coverage for those actions. However, policies may provide defense costs until a final legal determination is made. To address intentional wrongdoing, businesses may consider adding Crime Insurance or Employment Practices Liability Insurance (EPLI).
What is the difference between Professional Liability and General Liability Insurance?
While General Liability Insurance covers bodily injury and property damage claims, Professional Liability Insurance focuses on financial losses due to errors, omissions, or negligence in professional services. Businesses that provide advice or specialized services typically need both types of coverage.
How Much Does Professional Liability Insurance Cost?
The cost of Professional Liability Insurance varies based on factors such as:
- Industry and profession
- Business size and revenue
- Coverage limits and deductible amounts
- Claims history
Can I customize my Professional Liability Insurance policy?
Yes! Professional Liability policies can be tailored to meet the specific risks of your industry. Common endorsements include:
- Cyber Liability Insurance: Protection against claims related to data breaches and cyber threats.
- Contractual Liability Coverage: Extends coverage to certain contractual obligations.
- Disciplinary Proceedings Coverage: Helps with legal costs if a licensing board files a complaint against you.
Get Started Today
Protect your business and reputation with the right Professional Liability Insurance. At McShea Insurance, we help you find a policy that provides the right level of protection at a competitive rate.
Contact
McShea Insurance today to speak with an agent and customize a policy that meets your needs.
Steps to Get Started
Request a Free Quote: Contact us to discuss your professional liability insurance needs and receive a personalized quote
Customize Your Policy: Work with our agents to create a policy that addresses the risks unique to your profession.
Stay Protected: Secure peace of mind knowing your business is covered with McShea Insurance.
Safeguard Your Career with Professional Liability Insurance
Protect your business and reputation with reliable coverage. Contact McShea Insurance today to learn more about your options.