Do you need Professional Liability insurance?

Do you need Professional Liability insurance?

What is Professional Liability Insurance?

Professional Liability Insurance, also known as Errors and Omissions Insurance, protects you or your business when a client holds you responsible for professional service or advice that they believe didn’t perform as promised.

You keep hearing about it, but don’t really understand why you need it.

Unfortunately in our society today, the threat of being sued is very real.  This threat goes beyond the more well known exposures for professionals like lawyers, doctors or engineers.  Even if you don’t have a professional designation behind your name, if you own your own business, or are a consultant and provide advice, or professional type services to customers, you DO need this coverage.  Some examples of the types of business that could need it are;

  • IT contractors/consultants
  • Engineering Consultants
  • Construction Contractors
  • Misc. Managers
  • Misc. Consultants
  • Media/Event contractors or consultants
  • Social Services
  • Finance Professionals
  • Legal Professionals
  • Photographers
  • Forensic Practitioner’s
  • Training consultants
  • Travel Agents

 

Here are some common misconceptions that may help you decide if you need protection via a Professional Liability policy.

1.     Only people who do work or provide services in the U.S. really need to be concerned about being sued.

While the U.S. is known for being a very litigious society; even in Canada, the threat of being sued is very real, with the number of cases steadily rising every year.  An unhappy client who believes you misinformed them, did not provide the service they contracted you for, or made an error, may sue you.  Whether they are right or wrong is beside the point. Aside from any judgement that may be awarded against you, defending the lawsuit can be very expensive, in addition to the drain on your time and resources.

2.     I already have liability insurance for my business through a Commercial General Liability policy.

A Commercial General Liability policy provides very important protection for your business (especially if you are physically working on customers sites or handling their property), but it specifically excludes lawsuits arising from mistakes in the information, advice or service you provided your customer.

3.     I’ve got a lot of experience and/or education behind me. The chance of me making an error is slim.

Slim is not ‘none’.  Have you heard the saying ‘perception is reality’?  Even if you did nothing wrong, that does not prevent someone suing you because they think you did.  Ask yourself if you can afford the possibility of having to pay many thousands of dollars in legal fees, if only to defend yourself.  With the average lawyer charging upwards of $350 an hour, it’s not hard to see how quickly those costs will rise. Keep in mind as well, the judge could agree with the other side which means not only defense costs but a judgement against you.  The cost of the policy may be surprisingly affordable, given the potential risk you are self insuring in the absence of coverage.

We know that sometimes dealing with Insurance Brokers is time consuming and inconvenient. Your focus is running your business.  Filling out a 12 page application and sitting in a brokers office for an hour are just not possible.  With EasyCover we’ve taken that pain away.

In literally just a few moments, you can apply for, pay for, and print your own Professional Liability policy documents from your office or home.  It really is that easy.  Visit www.easycover.ca today.