The Basics of Professional Liability

By Ben Kraus

 

Ben Kraus, Professional Liability Specialist

A client alleges negligence that resulted in significant financial loss to their business and move to sue your firm or business. This is a dreaded scenario for many business owners and can mean the end of your business if not properly insured against this occurrence or accusation.

What is Professional Liability?

Professional Liability insurance is the insurance coverage designed to protect against this type of loss. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder.

Who needs Professional liability?

Anyone performing a professional service for a client needs to have professional liability. This includes but is not limited to: Lawyers, Accountants, Real Estate Professionals, General Contractors, Consultants, Dentists and Doctors. Common claims alleged in errors and omissions lawsuits include inaccurate advice, misrepresentation, negligence and the violation of good faith.

I already have general liability insurance, why do I need this?

General Liability coverage will usually only cover claims arising out of bodily injury, personal injury, property damage, or advertising injury. An easy way to remember the difference is that general liability mostly covers fiscal damage while professional liability covers financial damage.

 

Avoid putting your business at risk and contact Keller National today for a quote on your company’s professional liability.

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