08/17/2015
What Is Professional Liability Insurance?
Whether your company employs hundreds of consultants or you work out of a home office, if you make your money providing IT services, you need Professional Liability insurance.
Also known as Errors and Omissions Insurance or Professional Indemnity Insurance, Professional Liability insurance is your most critical coverage. Professional Liability insurance protects you and your business from potentially catastrophic litigation caused by charges of professional negligence or failure to perform your professional duties. This might include errors and omissions resulting in loss of client data, software or system failure, claims of non-performance, or negligent oversell.
If you are a subcontractor working on a client site, your client may require that you provide proof of General Liability and Professional Liability insurance.
Professional Liability insurance may be described in your contract in this way: "Contractor will maintain at its expense: Professional Liability insurance in the amount of $1,000,000 including coverage for errors and omissions caused by Contractor’s negligence in the performance of its duties under this agreement."
Why Do I Need Professional Liability Insurance?
Your business provides a highly specialized service that many of your clients don’t fully understand. At the same time, the projects you work on are highly sensitive and critically important to your client’s business. But you’re only human. If your errors and omissions result in loss of client data or a software or system failure, or if you fail to perform your duties, your client may be left unable to operate its business. This risk opens you up to litigation. That’s where Professional Liability insurance comes in. This includes, but not limited to; CNA, Nurses (RN's LPNs, DR's and anyone in the medical field)
Contact us today and we'll guide you in the right direction.
754-227-5361
