If you are a professional how much ever care you take some errors cannot be avoided and sometimes you may face a situation where you are sued for negligence by a client. And under this situation if you had signed up for professional liability insurance then you may be able to mount your defense without a huge financial burden. Many professionals like doctors, lawyers, consultants, brokers, architects, engineers and plumbers are benefited by taking this insurance coverage.
Not just professionals some firms like Information Technology companies, financial institutions, Law firms, Call centers, Media companies and Business Processing Outsourcing companies also might be benefitted by professional liability insurance. Even some non-profitable organizations today avail professional liability insurance.
A general insurance covers only the damages incurred due to theft, injury or advertisement damage. But many professions today are facing the threat of being sued for damages which would not be covered by the above mentioned normal policies. Claims made for errors, negligence, violation of fair dealing and misrepresentation are not covered under the typical insurance policies entered by businesses. That is why if you are into service oriented business it is advisable to take an errors and omissions insurance as it offers coverage on all such aspects. A mistake which leads to a financial harm to a client can happen in any profession and taking insurance and being prepared for such a possibility is the wisest thing to do.