Hi, I’m Brian Ciarrocca and I’m a Risk Management Associate here at Rue Insurance. Today, I’m here to speak to you about professional liability insurance. So what is professional liability insurance? Professional liability, which is also known as errors and omissions insurance, protects you and your business when mistakes happen. If a client believes that a mistake on your end resulted in a financial loss for them, they can sue you.
Professional liability is most commonly used to protect your business against claims that fall under one of three major categories: negligence, misrepresentation or inaccurate advice. Professional liability protects your business by covering the legal defense costs associated with those claims. It is important to note that even if you are not at fault whatsoever and did nothing wrong, a client can still sue you and your business if they think you made a mistake which led to financial loss for them.
Without professional liability insurance, you would have to pay those expensive defense costs out of your own pocket. This coverage is most popular amongst consultants, accountants and technology professionals. But it’s important to have for any business that gives advice to their clients or offers a professional service directly to a consumer. Many business owners believe situations like these would be covered under their general liability insurance. However, that is not the case.
That is why it is important to have professionals, like our staff here at Rue, complete an in-depth policy review to help make sure your business is properly protected.
