Sun, 23 Jan 2022

Professional liability insurance

is coverage for individuals and organizations that provide professional

advice or services in the event that a client alleges a mistake or

oversight was made. Also called errors and omissions insurance (or

E&O for short), it's critically important if your business is

focused on providing expertise.

Everyone makes mistakes occasionally. Professional liability

insurance keeps actual or alleged missteps and the high costs associated

with addressing them from causing your business financial harm.

Are Professional Liability Insurance and Errors and Omissions Insurance the Same Thing?

The terms "professional liability insurance" and "errors and

omissions insurance" are often used interchangeably. There was a time

when professional liability insurance was more focused on professions

like doctors and lawyers, and errors and omissions was more likely to

refer to any other field (accounting, architecture, IT consulting,

etc.). Today, most errors and omissions insurance companies-including

biBERK-think of the two as synonyms.

Why Do I Need Professional Liability Insurance?

Having professional liability insurance

is important if you provide a professional service or give advice to

clients. In some cases, it may be required by a client before they'll

sign a contract with you. Even if it's not required, having the right

E&O insurance coverage can protect you from the consequences of

mistakes or alleged mistakes.

What Types of Businesses Rely on Professional Liability Insurance Companies?

Professional liability insurance companies provide coverage to professionals in a wide range of industries, including:

  • Business consultants
  • Journalists
  • Insurance agents
  • Certified financial analysts
  • Lawyers
  • Bookkeepers
  • Real estate agents/brokers
  • Veterinarians
  • Barbers and beauticians
  • Marketing/advertising consultants
  • Architects and engineers
  • Dog groomers
  • Home inspectors
  • Training consultants
  • And many more

Is E&O insurance right for your business? As one of the leading professional liability insurance companies, our insurance experts can help you determine if you need an E&O policy.

How Much Does Errors and Omissions Insurance Cost?

Your errors and omissions insurance cost is determined based on a

number of factors. This includes things like where your company is

located, the size of your business, the scope of your advice and

services, and the limits and deductibles you select.

The provider you choose will also affect your premium. At biBERK, for

example, we insure you directly. That means there's no middleman or

insurance broker to increase the cost, so we can pass along savings of

up to 20% over other insurance companies.

What Does Errors and Omissions Insurance Cover?

Errors and omissions insurance covers a wide range of

risks associated with providing professional advice or services. For

example, it can protect a business if:

  • check

    A project coordinator is sued for failing to inform the client about a delay that ends up costing the company money

  • check

    An architect uses outdated building codes in a design resulting in the purchase of the wrong materials

  • check

    A travel agent books a flight into the wrong airport and the client incurs additional travel costs to get to their destination

  • check

    An employee makes a clerical error that causes the client's goods to be shipped to an incorrect address

  • check

    An engineer creates a faulty design and the resulting product causes harm

  • check

    A software consultant fails to perform the promised

    quality assurance testing on a product they develop for a client and the

    system doesn't function properly

What Does Professional Liability Insurance NOT Cover?

While professional liability insurance provides broad and valuable

protection, there are certain types of incidents that are covered by

other kinds of policies or not covered at all. For example, incidents

involving property damage or customer bodily injury that don't involve

professional services like design or advice fall under general liability insurance. Similarly, work-related injuries or illnesses are covered by workers' compensation insurance.

Also, errors and omissions insurance is meant to address honest

mistakes or alleged errors and omissions. It doesn't cover actions that

are intentionally dishonest or fraudulent.

Why biBERK for E&O Insurance?

When you get your E&O insurance from biBERK, you're working with a

leader among professional liability insurance companies. We're part of

the Berkshire Hathaway Insurance Group, with all of our major insurance

subsidiaries being rated A++ by A.M. Best Company and AA+ by Standard

& Poor's Corporation. That means they display superior financial

health and operating performance. Berkshire Hathaway Insurance Group has

millions of satisfied customers, more than 75 years of insurance

experience, and $38 billion in paid claims in 2020.

Our exceptional customer service is available to you if you have

questions about your coverage, or you can get a quote and purchase a

policy without assistance quickly and conveniently online. Plus, our

direct-to-you approach means you'll save up to 20% over other insurance

companies.

Professional Liability Insurance FAQ

Some of the questions business owners frequently ask about professional liability insurance include:

Does professional liability insurance protect me from baseless lawsuits?

Yes, it can. Even if the alleged misconduct is not true,

E&O can cover the cost of your defense, so you don't need to be

concerned about frivolous legal action.

Is professional liability insurance the same as general liability insurance?

No, they are two different kinds of coverage. General

liability insurance addresses things like property damage and customer

bodily injuries.

Can I get by with only errors and omissions insurance?

Typically, a small company needs other types of insurance

to protect against the many risks businesses face. Workers'

compensation, a business owners policy or BOP (also called property

& liability insurance), and commercial auto are just some of the

types of coverage available. Our insurance experts can help you

understand what's best for your company.

About biBERK Business Insurance

biBERK can help you with all your small business insurance needs, including: commercial auto, general liability, property and liability, umbrella, and workers' compensation. https://www.biberk.com

Media Contact:Rakesh Gupta | 402-408-2870

Original Source of the original story >> Professional Liability Insurance and Errors and Omissions Insurance: What's the Difference? by biBERK Business Insurance

There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this PR should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.

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