Also known as , coverage is intended to protect you and your company in the event a client, or a client's customer (if the policy extends coverage), alleges a financial loss because of your actions, or lack thereof, during delivery of your professional services. This coverage is separate from , which provides bodily injury and/or property damage liability, among others. If your business engages in the delivery of professional services, consulting, the giving of advice, or making recommendations, this coverage is a must.
You probably know that doctors and attorneys need professional liability coverage. But did you know that , programmers, , , business brokers, and employee leasing services (to name a few) also need errors and omissions policies? It is important to note there is no "standard form" for professional liability policies. This makes it critically important that your attention is focused not only on premium, but on coverage as well. The good news is that we are here to help you with both.
It is impossible to highlight a professional liability policy's features on one page due to the unique needs of each profession. Therefore, it is critical you understand what your errors and omissions your policy covers and the way your insurer will handle the reporting of a claim. Pay special attention to how a claim is handled if it is reported after your policy had expired for an incident occurring during the time you were covered by the policy. You must also ensure you are fully educated on policy exclusions, especially in regards to the “claims made” language of your policy. Some policies only cover claims due to an event that occurred AND was reported during the policy period; other policies include “extended reporting periods” for claims submitted after a policy ends. and we will be happy to help.
A few features to note about your policy:
- Is your policy claims made or claims made and reported?
- Are defense costs inside or outside of the policy limits? It is best to have them outside of your policy limits of liability. This will cost more, but it is worth it.
- Does your policy exclude dishonest acts with no exception for "innocent insureds"? If yes, consider removing this exclusion from your policy.