Professional liability insurance, popularly called in US as errors and omissions insurance, is a type of insurance that protects professionals like doctors and lawyers from being sued by a client. This insurance is the core of any successful technology management strategy. A professional liability insurance can offer coverage for service oriented companies and professionals for claims made regarding damages suffered due to the company’s negligence, errors or failure in performing any necessary task in the client’s benefit. Most policies under this category will pay off the expenses incurred in defending yourself in the court of law and mostly also include the amount required to pay of legal damages awarded if the judgment goes against the insured. Sometimes the Errors and Omissions Insurance also cover the settlement reached between the parties out of court.
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.
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.
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