Professional Liability Insurance, also known as Errors and Omissions (E&O) coverage, is an important type of insurance that protects your business against allegations that a service you provided, or failed to provide, negatively impacted your client. This type of insurance is especially important for businesses that deal directly with clients in order to perform services for them.
There are many types of professionals who can benefit from Professional Liability Insurance. Examples include architects, IT professionals, accountants, lawyers, and others who risk being sued either for mistakes or perceived mistakes when performing a service for a client. In the event a client does file suit against your company, this valuable insurance will help cover the cost of legal fees and settlements up to the coverage limit.
In some cases, a company may be required to have E&O coverage to operate, but even if it’s not required to perform services, it’s still vital to protecting your business from potentially devastating financial loss. Costly mistakes can happen during the course of doing business that won’t be covered by a general liability policy. While the cost of E&O coverage can vary depending on different factors, the many benefits of having this type of coverage, including intangible benefits such as peace of mind, make it worth every penny.