Everyone makes mistakes. For those whose expert advice or services are their livelihoods, professional liability insurance can help keep you from making a bigger one. This type of insurance protects you from unexpected results of your work, or work that you fail to provide to a client.
Experts With Less-Than-Expert Results
Also known as errors and omissions insurance, this coverage is for professionals in a variety of professions. Their trade is their expertise in a specific field, and sometimes results are not what the client expects, leading them to sue. Experts who need this type of coverage include:
- Mental health counselors
- Financial firms and accountants
- Attorneys and medical professionals
- Engineers and architects
- Technology/IT consultants
- Personal trainers and beauticians
Professional liability insurance can include a variety of situations, such as simple clerical errors that end up costing a client thousands of dollars or more. Another is a photographer hired to shoot wedding photos who accidentally ruins the photos, as well as the negatives, of this once-in-a-lifetime event.
Reimbursement for Settlements and Awards
Professional liability insurance can protect a company or an individual from losses as a result of defending against a client lawsuit. This includes any settlement reached between the company and client or amounts awarded by the courts. Part of the coverage is indemnifying or reimbursing the policyholder for these amounts.