What is Professional Liability/Errors and Omissions Insurance?

And why do I need it?

RISKPRO®

Professional Liability DefinedProfessional liability insurance, also known as Errors &

Omissions, or E&O is defined by IRMI.com as "coverage designed to protect traditional professionals and quasi-professionals against liability incurred as a result of errors and omissions in performing professional services. Although there are a few exceptions, most professional liability policies cover economic losses suffered by third parties, as opposed to bodily injury and property damage (which is typically covered under commercial general liability policies). The vast majority of professional liability policies are written with claims-made coverage triggers.

How does this specifically apply to me?

Your State might require the coverage in order to satisfy a licensing requirement

You might have a contractual requirement between you and a client

But a practical reason would be: As careful and risk conscious as a business might be,

claims might arise from false or frivolous allegations causing a business to incur defense costs.

But of course.... there can always be the case of a professional making an error or omission when rendering

professional services

Duty to Defend In most professional liability policies, your insurance

carrier has a duty to defend you, when that claim falls within the policy's limits and scope of coverage.

Professional liability/errors and omissions insurance is designed to protect professionals, within the scope of coverage for the professional liability policy, by defending them and paying any judgments or settlements on claims that may arise. The duty to defend is broad and includes any false or frivolous allegations.

Examples of Potential Professional Liability Claims A home inspector fails to see a crack in the drain pipe

located under the kitchen sink. Within a month of the new homeowner living in the house, the pipe bursts while the dishwasher is draining causing substantial water damage.

An engineer miscalculates the load bearing weight of a balcony. After 4 years of use, the structure collapses.

A lawyer prepares the will of a wealthy executive who has decided to leave nothing to his children. This lawyer fails to make any mention of the children in the will, which is required to legally establish the client’s wishes that the children inherit nothing.

Conclusion Professional liability insurance is the proper coverage to

maintain in order to provide financial protection for your business from allegations of negligence in rendering professional services.

How Do I Get This Protection? Visit us online to complete an application or contact us

today. We will obtain competitive quotes from several insurers

so you can make an informed decision about this important coverage.

We are an independent agency, meaning, we work with most of the top insurance providers in order to obtain a variety of quotes with competitive premiums. And we do it all for you... with no additional cost to you!

RISKPRO Insurance Agency, LLCGerald P Brunker, CPCU, ARM

Facebook: Gerald Brunker & RISKPRO Insurance Agency, LLC

Twitter: RISKPROInsAgy LinkedIn: Gerald Brunker Blog: www.riskpro.us/blog Email: brunker@riskpro.us