Professional Liability Insurance |
Protecting your Business and Profession

A wide range of businesses requires Professional Liability Insurance. Insurance coverage may be necessary for some companies. Clients may have a contractual condition requiring companies or professional service providers to carry professional liability insurance to engage with them in particular cases.

Customers may sue or claim a firm if there are no mistakes or errors on their end. For example, a customer may be sure that an interior designer accuses him of giving substandard service and failing to design the house according to the contract.

Professional Liability insurance covers the costs of defense and the costs of attending an inquiry, among other things. A premium professional liability policy will cover your legal fees, as well as any damages you are required to pay and any out-of-court settlements. The following is a list of what Professional Liability Insurance covers:

What is covered?

• Broad Coverage for Professional Liability
  Covers negligence, breach of duty, errors, omissions, misstatements, misleading statements, and confidentiality breaches during the performance or failure to execute professional services.


• Intellectual Property Rights
  It covers claims for accidental violation of intellectual property rights, such as copyrights, trademarks, service marks or service names, infringement of titles or slogans, and concept misappropriation.


• Previously Performed Services
  It is insurance for current and previous work completed in the agreed-upon timeframe. This timeline is critical to consider because anything that occurs outside of this period will not be covered.


• The Cost of Defense
  It pays for reasonable fees, costs, and expenses incurred by or on behalf of the Insured in connection with any claim investigation, defense, adjustment, settlement, or appeal.


• Lost Documents
  It provides coverage similar to that found in Material Damage plans and the Care, Custody, and Control coverage established in many General Liability policies. It applies when the Insured has a legal liability to their client even though there has been no professional breach of duty.


• Independent Contractors and Temporary Employees
  Work completed by your personnel, including temporary workers and freelancers.

Unintentional Acts of Negligence that Professional Liability Insurance Covers include:

• Poor Advice
  When a client loses money or suffers other harm, it results from following your counsel that turned out to be harmful to them.


• Misrepresentation
  Misrepresentation is when you promise to deliver a product or service in a specific manner or at a given time and then fail to do so.


• Violating the Law of Good Faith
  The duty of good faith is the idea that all directors and officers of a corporation in their capacity as corporate fiduciaries should happen with careful concern for their fiduciary responsibilities. Intentional neglect of a director’s or officer’s regular duties, willfully acting for a goal other than the corporation’s advantage, or intentionally breaking the law are all examples of breaches of the obligation of good faith.


• Copyright Infringement
  If you have unintentionally broken someone’s copyright, whether in logos, drawings, written words, software code, or other areas, Errors & Omission policies may cover you.

Architects: They are responsible for missing deadlines, mismanaged budgets, conflicts between contractors and clients, and other issues relating to architectural projects.

Engineers: Engineers can be sued by their clients for design faults, waste of time, and the resources for a completed project that did not work according to the client’s expectations.

Surveyors: Inaccurate measurements may endanger their reputation. If their data renders the system useless, their clients may pursue lawsuits.

Accountants/Auditors/Bookkeepers: They have the vital function of collecting, auditing, and accounting for all of their client’s finances. If their client’s funds are harmed because of their mismanagement, their clients can sue them.

IT Consultants: Errors in IT suggestions may result in a lawsuit, particularly if the client has lost a significant amount of money because of investing in the consultant’s wrong ideas.

Software Developers: They may face legal action if they create software that compromises the entire system. Thus, including their clients’ most sensitive files.

General Liability Insurance: This insurance covers you in the event of bodily injury, property damage, medical bills, libel, slander, defending lawsuits, and settlement bonds or judgments.

Commercial Property Insurance: This insurance protects your firm from property loss and damage caused by a range of disasters, including fire, smoke, wind and hail storms, civil disobedience, and vandalism.

Business Owners Policy: A business owner’s policy is a package of insurance that includes all of the standard coverage options in one package. They can help you save money by simplifying the insurance purchasing procedure.