Professional Liability and Malpractice Insurance
Different professions may have various titles for professional liability insurance, such as medical and legal coverage referred to as malpractice insurance, or errors and omissions (E&O). Professional liability insurance coverage aims to protect you and your company in the event that a client pursues action for services you provided or failed to provide, or if the client holds you responsible for a mistake that they believe caused them harm. Gallant provides professional liability coverage to help defend professionals and their companies from claims of carelessness or nonperformance. This coverage option is specifically designed to protect against claims that are not covered by a general liability policy.
The most common practices that benefit from this service include:
- Construction and engineering firms
- Data privacy
- Design professionals
- Healthcare workers
- Insurance brokers
- Intellectual property infringement
- Independent financial advisors
- Real estate agents
- Technology and media specialists
- And more
A wide variety of insurance plan options are available through professional liability insurance coverage for small businesses, including alleged or actual negligence, and errors or omissions when providing professional services. This form of liability insurance protects professionals and their businesses in a situation where advice and services provided to individuals and companies become lawsuits. By paying for defense against a negligence claim made by a client, this coverage focuses on alleged failure to perform and financial losses caused by an error or omission by the policyholder or an employee. General liability policies do not address these claims of direct harm. The professional service you provided can be claimed to either cause your client financial harm due to mistakes on your or your employees part (errors) or because you failed to perform some part of your service (omissions).
Claims typically involve negligence, misrepresentation, violation of good faith and fair dealing and incorrect advice provided. Privacy violations can also be added to your coverage if your company works directly with customers while delivering your services. An example of a claim may be a technology company experiencing a hardware, electronic or software failure. Financial impacts can be significant if insurance coverage does not cover this scenario. You can also discuss management liability insurance coverage with your agent, which is created to help protect directors and partners from financially devastating lawsuits that may occur. The best solution is usually a business owners policy, which can include professional liability coverage and other package options for any risk or situation that may arise. With the appropriate insurance policy and planning, your company can be fully covered in the event of a lawsuit or claim of negligence.