A professional service
Professional Liability
What is Professional Liability Insurance?
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Regular professional advice to clients
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Contractual service to your clients
A type of business insurance known as professional liability insurance shields professionals and companies from client or customer claims of carelessness. In general, personal harm, copyright infringement, negligence, and other things are covered by professional liability insurance. A professional liability coverage may cover claims for losses resulting from actions you took or from actions you should have taken. Errors and omissions coverage and professional indemnity insurance are other terms for professional liability.
What Does Professional Liability Insurance Cover?
Claims of actual or purported carelessness resulting from the provision of professional services, such as inaccurate advice, omissions, or incomplete services, are covered by professional liability insurance. This coverage covers defense costs and damages up to the policy limits, including in cases where an error was committed.
For instance, a client says they lost a lot of money because their accountant filed their taxes erroneously. The costs of the lawsuit and settlement may be partially covered by the accountant’s professional liability insurance.
A large number of professional liability policies are written on a claims-made basis, meaning that only claims made within the policy’s term are covered. To cover events that take place prior to the start of a policy’s coverage, a retroactive date may be inserted.
Who Needs Professional Liability Insurance?
To guard against lawsuits resulting from errors, every company that provides professional services or advises others should think about getting professional liability insurance.
Before they may conduct business, several states have legal requirements that some professionals, like lawyers, obtain it. In their business contracts, clients may also demand that a business carry a specific level of professional responsibility.
Professional liability insurance is necessary for a range of business professionals, including:
Consultants
Real estate agents
Insurance agents
Attorneys
Accountants
Architects
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