Business Insurance Q & A – Who Can Benefit from Professional Liability Coverage?
Business owners have a lot on their plates, with insurance being an extremely important consideration. There are many options when it comes to commercial insurance, depending on the type of business you run. In this post, we’re going to look at a common type of business insurance coverage – professional liability coverage.
Professional Liability Coverage Defined
First off, let’s define professional liability coverage. This type of business insurance indemnifies professionals for losses or expenses that result from claims that occurred because of negligence or an error (committed or alleged) by the professional in question while performing his or her work. This type of insurance coverage is also commonly referred to as Errors and Omissions or E&O. You can also learn more about what indemnity means for business insurance here.
The claim can relate to bodily injury, or it can relate to other types of loss, such as financial loss.
A common example that most people have heard of is a malpractice claim made against a doctor.
What types of businesses should consider professional liability coverage?
Professional liability coverage, as the name suggests, applies to professionals. A few examples include:
- Financial advisors
Essentially, any professional that provides advice or recommendations to clients or patrons would benefit from some form of professional liability coverage. We have a more comprehensive list of the professionals that would benefit from E&O (including those that must have it to practice in Ontario) here.
If you’re not sure if professional liability insurance is right for you and your business or consultancy, contact us to discuss further whether the services you offer would benefit from this type of coverage.
With so many different types of commercial insurance coverage available, as a business owner you might be confused about which type of plan is applicable and crucial to protect your enterprise. If this is you, get in touch with one of our insurance professionals today. We’ll be happy to discuss further your options and what would make the most sense for your business. Or if you’re ready for a quote, head over here to connect with someone from our team.
Image source: FreeDigitalPhotos.net | Stuart Miles