What Does Professional Liability Insurance Cover?
Professional liability insurance, also known as errors and omissions insurance, provides coverage for professionals against claims of negligence, errors, or omissions that occur in the course of their work. This type of insurance is crucial for individuals and companies offering professional services. Here are some key areas covered:
- Negligence Claims: Protects against allegations of failing to perform professional duties with proper care, leading to client losses.
- Errors and Omissions: Covers claims arising from mistakes or oversights in the services provided.
- Legal Defense Costs: Includes expenses related to defending against lawsuits, including attorney fees, court costs, and settlements.
- Professional Services: Specifically designed for various professions, such as lawyers, accountants, consultants, and healthcare providers.
- Inadvertent Breach of Duty: Offers coverage if a professional unintentionally breaches a duty owed to a client or third party.
It is important to note that while professional liability insurance covers many aspects of professional services, it does not cover intentional misconduct or bodily injury, which are typically covered under general liability insurance. Understanding the scope of coverage is essential for professionals to protect themselves effectively.