Most businesses purchase general liability insurance to protect their businesses against certain kinds of claims. These claims could include bodily injury and property damage. It is very important for businesses to understand the difference between professional liability and general liability.
Professional Liability insurance, also called “Errors & Omissions” insurance, protects against a claim from a third party who suffers a financial loss as a result of your services or actions.
If someone feels they have suffered a loss or damages due to a professional service, often their next action is a lawsuit. These kinds of actions can be costly and severely reduce a firm’s resources. Professional Liability insurance can help preserve assets and more importantly, help preserve the firm’s reputation.
If you perform any of these services, you may need professional liability insurance:
- Provide any construction management, which could include changing design plans, hiring sub-contractors and or overseeing construction projects
- Provide advice to clients
- Perform professional services
- Advise client on how to save money
- Provide advice on how to install equipment
- Recommend any building code changes
Industries that typically need Professional Liability Insurance include:
- Real estate professionals
- Non Profits
- Travel agents
- Medical professionals
- Funeral directors
This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.