Any miscellaneous business professional that runs their own businesses needs professional liability insurance in addition to an in-home business or business-owners policy. This will safeguard them from monetary losses as a result from lawsuits filed against them by their customers.

Professionals are generally supposed to have widespread technical knowledge in their industry as well as being able to perform services according to the standards of conduct in their profession. If they fail to live up to those expectations, they can be held liable in a court of law for any harm caused to another person or business. When liability is limited to acts of negligence, professional liability insurance may be called “errors and omissions” liability. The policy will pay any judgment for which the insured is legally liable, up to the policy limit. It also provides legal defense costs, even when there has been no wrongdoing.

Errors and omissions insurance does not cover criminal acts or intentional acts. It does not cover premises liability and is not a substitute for general liability insurance. It does not cover claims within a group or business if one person wants to sue another in that same group by one insured against another, such as a medical group where more than one doctor is covered under a single policy. Errors & omissions insurance does not cover punitive damages or fines levied by professional associations, licensing boards or state or federal agencies.

“Claims made” means that the act causing the claim has to take place during the policy term and the claim has to be filed or “made” while the policy is in effect. If the policy is canceled, non-renewed or lapsed and a claim is reported, the claim will be denied.

(Source: iii.org and business.com)

Call us to discuss your errors & omissions insurance in California, Texas or surrounding states at (866) 840-8004.