Professional liability insurance protects from financial loss and damage to their reputation. Also referred to as an errors and omissions policy, it protects professionals from claims of negligence that occurred because they made a mistake while performing their duties. Even experts can make a mistake. This coverage ensures that the person who was “injured” by your mistake is sufficiently compensated. Government contractors rely on this type of insurance to cover their unique needs. This insurance covers mistakes, negligence, personal injury, and copyright infringement.
Professional liability policies are sometimes written when a claim is made and will pay back to a specific date. A retroactive date may be two weeks or two months in the past. This type of policy also includes an extended time frame that is sometimes 30 to 60 days in the past. This allows a person to have coverage if a claim is filed on an incident that occurred at an earlier date.
A professional liability policy will not likely cover bodily injury claims. They may, however, be covered by a general liability policy. A professional liability policy will not cover any third-party damage. General liability will cover many claims, including false arrest, advertising injuries, and copyright infringement.
Any professional can benefit from having a professional liability policy. Government contractors who offer advice or provide services to their customers need this type of insurance to protect them in case of a miscommunication or a mistake. Sufficient coverage will help save their reputation and protect their financial security.
The cost of a professional liability policy will be based on many variables. Each business is unique when it comes to location and the type of products/services that are offered. The size of the business and how long it has been operating will determine the amount of risk an insurance company will expect to deal with. The more risk a contractor carries, the higher their premiums will be.
Carrying professional liability insurance is important for more reasons than you might think. Yes, it covers damages, but it is also very beneficial if a lawsuit is filed against you. When a quality professional liability policy covers you, the peace of mind allows you to relax, knowing you are fully protected from financial loss.
When you have questions about a professional liability policy, call the agents with the most experience. Contact Abatelli Insurance today and speak to a reputable agent. We have the answers you need to ensure you have the protection you need to keep your business running efficiently. As a professional, you have unique needs to secure your financial future and maintain your reputation. Don’t put your future in harm’s way. Schedule an appointment and talk to one of our agents today!