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.
Unfortunately, in our society today, the threat of being sued is very real. This threat doesn’t just apply to professionals like lawyers, doctors, or engineers. If you own your own business or are a consultant and provide professional advice or services to customers, you definitely need this coverage.
Some examples of the types of business that could benefit from professional liability insurance are listed below:
- 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
Common Misconceptions about Professional Liability Insurance
There are some common misconceptions about professional liability insurance, and this may be the reason some business owners are unsure of whether or not they need this type of coverage. Below, we discuss these misconceptions and what people often get wrong about business liability insurance and its implications.
1. Only people who work or provide services in the U.S. really need to be concerned about being sued.
It’s true that the U.S. is known for being a very litigious society. In Canada, however, 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 settlements or any awards you may be ordered to pay, legal defense can be very expensive, in addition to the strain it places on your time and resources.
2. I already have liability insurance for my business through a commercial general liability insurance 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 services you provide for your clients.
3. I’ve got a lot of experience and/or education behind me. The chances of me making an error are slim.
Slim doesn’t mean nonexistent. Have you heard the saying ‘perception is reality’? Even if you did nothing wrong, that does not prevent someone from suing you because they think you did. Ask yourself if you can afford possibly having to pay many thousands of dollars for legal defense, which is necessary even if you’re innocent. With the average lawyer charging upwards of $350 an hour, it’s not hard to see how quickly those costs will rise. The cost of the policy may be surprisingly affordable given the potential sums you may have to pay in the absence of coverage.
Get Professional Liability Insurance Quickly and Seamlessly with EasyCover
We know dealing with insurance can be time-consuming and inconvenient. Your focus is running your business. Filling out a 12-page application and sitting in a broker’s office for an hour is not what you want to spend your time on. With EasyCover, we’ve taken the tediousness out of the process. In literally just a few moments, you can get a quote, purchase your insurance online and print your own policy documents from your office or home. It really is that easy!
Visit EasyCover today to get your free, no-obligation quote or talk to one of our insurance experts to get more information about professional liability insurance and find answers to any questions you have.