Professional Liability Insurance
Professional liability insurance is a type of insurance policy that provides coverage to professionals in case they face claims of negligence or errors in their work.
This type of insurance is designed to protect professionals from financial losses that may result from lawsuits and legal actions that arise due to their professional conduct.
What Exactly is Professional Liability Insurance?
Also known as errors and omissions (E&O) insurance, Professional Liability is a type of insurance that provides protection to individuals and businesses in the event of a claim or lawsuit alleging negligence, errors, or omissions in their professional services. Professional liability insurance typically covers claims for damages and legal defense costs, which can be substantial.
Who Needs Professional Liability Insurance?
Professional liability insurance is crucial for professionals who provide advice, guidance, or services to clients, such as doctors, lawyers, architects, engineers, accountants, and consultants.
In general, any professional who can be held liable for errors or omissions in their work should consider purchasing professional liability insurance. It is especially important for small business owners and independent contractors, who may not have the financial resources to withstand a lawsuit or legal claim against them.
How Does Professional Liability Insurance Work?
Professional liability insurance works by providing coverage for claims that arise from an alleged error or omission in a professional's work. If a client files a claim or lawsuit alleging negligence, the professional can notify their insurance company, which will investigate the claim and provide legal representation if necessary. The insurance company will also pay for damages awarded to the plaintiff, up to the policy limits.
Professional liability insurance policies are typically tailored to the specific needs of the professional, with coverage limits and deductibles that can be customized to fit their individual circumstances. It is important to note that professional liability insurance policies do not cover intentional or criminal acts.
The Mahoney Group Core Values
We serve our employees, clients and business partners with a servant's heart.
We deliver solutions that bring value and protection to the clients we serve.
We are accountable to each other, our clients and business partners. You can rely on us to always do the right thing.