Mistakes happen. When your business makes a mistake, however, the smallest misstep can be costly. Whether it’s a missed deadline, a misunderstanding, or professional advice that didn’t live up to it’s promise, you can protect your business against professional mistakes.
Professional Liability Insurance
Professional liability insurance covers lawsuits related to your services or products. Also known as Errors and Omissions (E&O), professional liability is there in the event a disgruntled client or unsatisfied customer decides to sue your business for their financial losses.
Professional liability lawsuits often result from very common situations, such as:
- Missed deadlines: Even if it’s out of your control, failing to deliver in time can lead to losses for your client.
- Mistakes: A delivery address written down wrong can lead to a client not receiving what you promised.
- Misunderstandings: If you delivered one thing, but your client expected another, this mismanaged expectation could leave your client unsatisfied or even facing a financial loss.
What Does Professional Liability Cover?
If your business is facing a lawsuit for alleged negligence or breach of contract, professional liability insurance can cover the costs of defending yourself in court.
- Lawyers’ fees
- Miscellaneous court fees
- Settlements Judgements
Businesses that offer professional services, such as accountants, attorneys, architects, engineers, medical professionals, web designers, and even agencies are often associated with professional liability insurance. If you offer a service to a client for a fee, you run the risk of that service not being completed on time, as expected, or even leading to a financial loss for your clients.
However, your business may also be at risk for a professional liability lawsuit, even if you don’t fall within one of those service professions mentioned above. If you offer a product or a service, you may benefit from the only business coverage designed to protect you from even the smallest misstep, error, or mistake.