Professional liability insurance (PLI), also called professional indemnity insurance (PII) or errors and omissions insurance (E&O), is a form of business insurance that helps protect professionals from bearing the full cost of legal defense in the event of negligence claims made against them. If you are a professional, whether you provide consulting services, financial advice or any other type of service, PLI can help protect you and your business.
What is professional liability insurance?
As a business owner, you want to protect your company from lawsuits and other financial damages. Professional liability insurance, also known as errors and omissions insurance, can help cover these costs.
This type of insurance can help cover legal expenses if you’re sued for something like negligence or defamation. It can also help pay for damages if you’re found liable. Depending on the policy, it may also cover things like settlements and court fees.
Professional liability insurance is important for any business owner, but it’s especially important for businesses that provide professional services. If your business could be held responsible for someone else’s injuries or losses, you need this type of coverage.
Talk to your insurance agent about whether professional liability insurance is right for your business.
What does professional liability insurance cover?
Professional liability insurance, also known as errors and omissions insurance, protects businesses and professionals from claims of negligence or malpractice. This type of insurance can help cover the costs of legal defense and any damages that may be awarded in a lawsuit.
This type of insurance is important for any business or individual that provides a professional service, such as lawyers, doctors, accountants, and architects. Even if you are confident in your work, you can never predict when a client may decide to sue. Professional liability insurance can give you the peace of mind knowing that you are protected financially in the event of a lawsuit.
Who needs professional liability insurance?
If you work in a professional or service-based industry, then you may need professional liability insurance. This type of insurance can help protect you from financial damages if you are sued for negligence or errors and omissions in your work.
Some examples of professionals who might need this type of coverage include:
-Attorneys
-Accountants
– Architects
– Engineers
– Insurance agents
– Real estate agents
– Stockbrokers
If you work in one of these industries or provide similar services, then you should consider getting professional liability insurance. Even if you are careful and do your best to provide quality work, mistakes can happen. If you are sued and found liable, this type of insurance can help cover your legal fees and any settlements or judgments against you.
How much does professional liability insurance cost?
Professional liability insurance typically costs between $500 and $1,000 per year. The exact cost will depend on the size of your business, the industry you’re in, and the amount of coverage you need.
How to get professional liability insurance
If you are a professional who provides services to clients, you may need professional liability insurance. This type of insurance can protect you from financial damages if you are sued for negligence or malpractice.
There are a few different ways to get professional liability insurance. You can purchase it as a standalone policy, or you can add it to your existing business insurance policy. You can also get coverage through a professional association or group.
When shopping for professional liability insurance, be sure to compare policies from different insurers to find the best coverage for your needs. You should also consider the deductible and limits of each policy.
Conclusion
Professional liability insurance is a type of insurance that helps protect businesses and professionals from financial damages that may arise from errors or omissions in their work. This type of insurance can be vital for business owners and professionals who want to protect themselves and their businesses from the potential financial ruin that can come as a result of mistakes made in their work. If you are a business owner or professional, consider whether professional liability insurance is right for you.