Insuring your business is an essential part of protecting your company, but insurance lingo can often be confusing, especially when it comes to liability coverage. For example, you might have heard of Professional Liability Insurance, Errors & Omission Insurance, and Malpractice Insurance. But did you know they all refer to basically the same policy? In today's Aegis blog post, we explain what these business insurance terms means and how these policies can help protect the future of your business.
Difference Between The Three Terms
With Professional Liability, Errors & Omission, and Malpractice Insurance, they all work to protect businesses that are facing lawsuits or liability claims due to possible mistakes. Their primary difference lies in the industry that each type covers. Professional Liability coverage typically protects engineers, consultants, and architects. Errors & Omissions Insurance refers to coverage specifically for technology, real estate, and financial planners. Malpractice Insurance is a type of Professional Liability coverage for doctors, dentists, and lawyers.
What They Cover
These types of business insurance all protect companies facing lawsuits either related to company negligence, mistakes made on a client project, failing to complete a job, or when a company has been accused of doing a job incorrectly even if there is no actual fault on their side. Errors & Omission, Professional Liability, and Malpractice Insurance all protect companies by helping cover court costs, attorney fees, and any judgments or settlements related to the liability claim.
Why Your Business Needs It
No matter a company's best efforts, problems can arise either with a negligent department, a careless employee, or some other issue that leads to a liability claim from a disgruntled client. Without the protection these policies offer, a single lawsuit could shatter a company's financial stability and tie up resources for months or even years as the lawsuit makes its way through the court system. Having insurance protection from lawsuits is critical if you want to ensure your company can survive and thrive for years to come.
At Aegis Insurance & Financial Services, we pride ourselves on providing companies of all industries with top quality Commercial Insurance coverage that protects all facets of their business. Professional Liability, Errors & Omission, or Malpractice coverage might be the missing piece of your company's insurance portfolio. Contact our Aegis office at 713-850-7622 for more information, or fill out our online form to request more information.