Professionals are expected to have extensive technical knowledge or training in their particular area of expertise. They are also expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they cause to another person or business. When liability is limited to acts of negligence, professional liability insurance may be called “errors and omissions” liability.
Errors & Omissions protects clients from liability resulting from errors or omissions in the performance of professional duties. Errors & Omissions is applicable as a general rule to professional business activities such as banking, accounting, law, insurance and real estate. An error and omission, a mistake, which causes financial harm to another can occur on almost any transaction in any profession. This type of insurance helps to protect a professional, an individual or a company, from bearing the full cost of defense for lawsuits relating to an error or omission in providing covered professional services. This is a separate coverage from a standard general liability or property insurance policy.
Errors and omissions insurance may be appropriate for anyone who gives advice, makes educated recommendations, designs solutions or represents the needs of others such as teachers, consultants, software developers, ad copywriters, web designers, placement services, telecommunication carriers or inspectors. This coverage focuses on the failure to perform, financial loss and error or omission of the products or services sold.
Professional liability insurance is a specialty coverage. Professional liability coverage is not provided under homeowners endorsements, in-home business policies or business owners policies (BOPs). Don't let incorrect advice or opinions turn into large lawsuits. Protect your business. Contact New Horizon Insurance Services for a free quote and an evaluation of your businesses needs.