Professional liability insurance (PLI), also known as Errors and Omissions (E&O) coverage or malpractice insurance in some industries, focuses on liabilities resulting from services, and is used across a number of industries as a protection for businesses who provide professional services to their clients. Many business owners mistakenly believe that professional liability insurance is not a necessary addition to their business insurance coverage. However, what seems like a very small error can turn into a costly and devastating lawsuit for a business.
PLI is designed to help the insured address the liability risks that arise from the rendering of their professional services. Risks can include something as simple as missing paperwork that results in lost business income for their client, who may then turn around and sue the service provider to recoup lost funds.
Here are some of the most common sources of professional liability insurance claims:
- Errors or Omissions: Professional service providers in any industry are subject to errors or omissions claims. These claims can include mistakes in paperwork or online forms, misplaced or unsubmitted paperwork, incorrect advice given to a client or administering services, medication or information to the wrong client.
- Failure to Render Services or Breach of Contract: When a service provider enters into a contract with their client, they are making the promise to complete specific services for that client. If the services promised are not completed to the client’s satisfaction, or if the business providing the services does not fulfill all the requirements of the contract, the client may sue them for breach of contract or failure to render services.
- Significant Financial Loss: In many cases, a client may suffer a significant monetary loss as a result of the actions or negligence of the service provider. In order to recoup these losses, clients will typically sue the service provider. This would fall under a professional liability claim.
Not only does carrying comprehensive professional liability insurance protect a business owner from potentially damaging litigation costs, it can also save them some of the hassle of having to defend themselves entirely. Professional liability insurance coverage often includes a “right and duty to defend” clause, in which the insurer is obligated to handle aspects of a lawsuit such as selecting a lawyer and dealing with case administration on a day-to-day basis. This allows the business to focus their time and energy on their daily operations and current clients, where it’s most needed.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.