If you’re in the business of offering guidance to clients (and who isn’t these days) you are at risk of being sued by someone claiming harm. As a professional, you are expected to have extensive knowledge or training in your particular area of expertise. If expectations are not met, you could be legally responsible for any damage, injury or financial loss caused.
Professional Liability insurance pays the cost of your defense and any damages awarded (within the policy limits) on claims against the services offered by you or your business.
You may know Professional Liability in some circles as Malpractice Insurance or an Errors & Omission (E&O) Policy. It protects your business from claims against the advice, expertise or professional services you provide.
What is the difference between an ERROR and an OMISSION, I’ve heard these discussed with this type of policy?
Yes, these are related! Professional liability insurance protects you in cases of faulty service (referred to as an Error) or failure to provide the service promised altogether (considered an Omission).
What if a customer is claiming to be injured by my massage service, would this type of policy cover me?
Yes, this policy will give you the base coverage you need should one of your clients claim to be injured. However, it may not cover everything. We will take a look at all of your potential risks and build a plan that keeps you operating during hard times.
I’ve read a lot about the rising costs of malpractice insurance, why is this?
Claims of liability against professionals often result many years after the alleged error was actually committed, this makes it difficult for insurance companies to evaluate your true exposures over time when determining the premium necessary to cover you. We have been in this business for a long time, and have several tricks for help you find an affordable policy.