Professional Liability Insurance, also known as Errors and Omissions Insurance, is a type of insurance coverage designed to protect businesses and professionals from claims of negligence or inadequate work performance. This insurance policy is intended to cover a wide range of professions, including doctors, lawyers, accountants, architects, engineers, and other professionals who provide specialized services to their clients. The policy provides financial protection in case a client files a lawsuit against them for alleged errors, omissions, or negligence in their professional services.
Professional Liability Insurance policies vary depending on the profession and the level of risk associated with the services being provided. This type of insurance typically covers legal fees, court costs, and damages awarded to the plaintiff in the event of a lawsuit. The policy may also cover the cost of hiring an expert witness or other professionals to testify on behalf of the insured. Additionally, some policies may include coverage for claims arising from cyber-attacks, data breaches, and other technology-related issues.
Due to the litigious nature of today's society, it has become increasingly crucial for businesses and professionals to have Professional Liability Insurance. This insurance is necessary as a lawsuit, even if baseless, can lead to bankruptcy for an individual or business. Professional Liability Insurance provides assurance and allows professionals to continue their work confidently without worrying about financial ruin.