Mistakes can happen in any business, like a restaurant getting an order wrong or a retailer ringing up the wrong price for a pair of shoes. Some business mistakes are small and easy to correct, but others may result in unhappy or disgruntled customers with a liability claim against your business.

Today we dive into the world of Professional Liability Insurance, also known as Errors & Omission (E&O) Insurance, and discuss how it can be your company's shield against legal issues stemming from your professional services. Also learn why Aegis Insurance & Financial Services is the best possible insurance partner for making sure your business is fully protected.

What is Professional Liability Insurance?

If your business provides any type of professional services where people rely on your skills and expertise, you may sometimes make a mistake or miss an important detail that negatively impacts a client. For example, if you're a real estate agent that makes a mistake on important paperwork, or a doctor who accidentally cuts a nearby organ while performing a routine surgery, your client might take you to court for reimbursement or damages and losses caused by your services.

Professional Liability Insurance (or E&O Insurance) protects businesses accused of alleged negligence, errors, or omissions in professional services by covering the legal costs associated with liability claims. Lawsuits can be expensive and time-consuming, so this type of policy gives companies the financial resources to defend themselves in court while protecting the company's finances.

What Does It Protect?

With a E&O policy, your business can have the insurance protection needed to cover these key expenses related to liability claims.

Legal Costs:
If your business is hit with a lawsuit claiming your professional advice or service led to financial losses for your client, E&O insurance can help. It covers the attorney fees and court costs necessary to defend your business reputation from a liability claim.

Settlements:
If your business may have been at fault, but you want to avoid the lengthy and expensive process of a court trial, you may be able to offer a cash settlement to resolve the issue. Professional Liability coverage covers the cost of settlements so your company can quickly pay the other party without burning through company cash reserves or face trial.

Judgments:
If liability claims result in a legal ruling against your business, Professional Liability Insurance can cover the cost of any required judgments awarded by the court. This allows your business to meet legal obligations while saving your business major out-of-pocket costs that could lead to financial ruin.

The Businesses That Most Need E&O Coverage

Businesses that sell professional services to clients and customers benefit most from carrying Professional Liability coverage, since a single lawsuit can damage both the reputation and financial health of the business. Companies that may be in need of E&O coverage include:

Financial or Legal Advisors:
Whether you are a financial advisor, attorney, or accountant, anyone providing professional legal or financial guidance benefits from having E&O insurance as part of their Business Insurance portfolio. A single mistake or oversight can lead to negative consequences for clients, but E&O coverage offers financial protection if the end result is a liability claim.

Technology and IT Professionals:
In the fast-paced world of technology and IT Services, the smallest coding error or security breach can lead to significant consequences. Tech and IT professionals should consider E&O coverage to protect against claims of software or system failures.

Medical Professionals:
Healthcare providers, including doctors, dentists, and nurses, should consider Professional Liability Insurance to safeguard against claims of medical negligence or errors in patient care. The slightest error could cause personal injury or damage to patients, so having good insurance coverage can help protect your medical office from costly claims.

Real Estate Agents:
When dealing with real estate purchases or property acquisitions, real estate agents can face lawsuits if clients feel their advice led to financial losses. This can range from paperwork errors, mistakes with property appraisals, or poor research regarding taxes or property values.

If your business regularly advises or performs professional services for clients, then Professional Liability or E&O coverage should a cornerstone of your Business Insurance policies.

Get The Coverage Your Business Needs Today

At Aegis Insurance & Financial Services, we understand the risks and rewards of running a business, and the importance of protecting your company if something goes wrong.

If you're ready to learn how Professional Liability Insurance can protect your business, contact us today at 713-850-7622 for more information or fill out our online form for a free quote.