Professional Liability Insurance, also known as Errors & Omissions Insurance (E&O), is designed to protect professionals and businesses against third-party claims alleging negligence, errors, or omissions in the provision of professional services. This insurance is essential for any business that offers services based on professional knowledge and expertise.
Basic coverage
- Errors and Omissions
- Professional Negligence: Covers claims for damages suffered by clients due to negligent acts, errors, or omissions committed in the provision of professional services.
- Service Failures: Protection against lawsuits related to the inability to provide the promised or expected service.
- Legal Defense Costs
- Legal Expenses: Covers the costs of legal defense in case of a covered claim, including attorney fees, trial costs, and other legal expenses.
- Indemnities: Payment of indemnities or settlements resulting from covered claims, up to the policy limit.
- Defamation and Slander
- Defamation Protection: Covers claims for defamation, slander, or false advertising resulting from professional activities.
- Data Confidentiality
- Privacy Breach: Coverage for claims related to the violation of client data confidentiality and the protection of sensitive information.
- Worldwide Coverage
- International Claims: Protects against claims filed anywhere in the world, as long as the lawsuit is filed in a court within the covered jurisdiction.
Benefits
- Peace of Mind: Protects your reputation and business against the inherent uncertainties of providing professional services.
- Compliance: Many contracts and service agreements require providers to have professional liability insurance.
- Customer Trust: Provides your clients with additional assurance that your company is committed to quality and responsibility.
- Financial Protection: Covers defense costs and indemnities, preventing your business from bearing high legal expenses.