Professional Liability Insurance

Professional Liability Insurance, often called errors and omissions insurance (E&O insurance), provides liability coverage for a business that provides professional and personal services.

Errors and Omissions Insurance, also called professional liability insurance, protects your small business against accusations of negligence for failure to perform your professional services; even if you haven't made a mistake.

General Liability Insurance commonly referred to as Commercial General Liability Insurance (CGL) protects your business from another person or business's claims of damage to property, bodily injury and associated medical costs.

Some examples of what could be covered under Professional Liability Insurance are:

  • Dissatisfied client:

    A personal injury attorney is working with a husband and wife on their auto wreck claim. The couple is on the brink of losing their home and everything they have worked for due to the accident. The problems worsen, and the couple decides to fire their attorney by leaving him a voicemail. Several months pass and the attorney did not send the proper separation notices to the couple. When the couple tries to settle their case, they realize that the statute of limitations has expired. The couple blames the attorney for this happening and decides to sue the attorney for malpractice. Professional liability insurance could protect the attorney if such a claim is made.
  • Negligence:

    A catering company is contracted to provide food for a wedding. When delivering the food to the location, the driver does not realize that there are no refrigerators at the location. The driver leaves the food at the location and it spoils before the wedding party arrives. The couple getting married makes a claim against the catering company for the lapse in judgment and planning. A professional liability insurance policy could protect the catering company against claims of negligence.

You should seriously consider Errors and Omissions (E&O) Coverage if your business:

  • Provides a professional service
  • Regularly gives advice
  • Is required by its clients to have Errors and Omissions (E&O) insurance

Some examples of what could be covered by Commercial General Liability Insurance (CGL) are:

  • Bodily injury: A customer slips and falls when entering a local florist shop, fracturing his/her wrist. The florist is legally liable for the customer's medical bills and potential lost wages. A general liability insurance policy could cover the claim up to the policy limits.
  • Property damage: A flooring contractor is working in a customer's office when accidentally a window is broken while moving materials. The window is completely destroyed and will cost several thousand dollars to replace. The contractor's general liability insurance could cover the cost to replace the window.
  • Personal injury: An entertainment company has a huge following on social media. They posted on their public site some unflattering and disparaging comments about another company. The other company learns of the post and sues the entertainment company for slander. A general liability policy could cover the subsequent claim, up to policy limits, and pay for an attorney to defend the entertainment company if necessary. Learn more about general liability insurance by contacting Lanmar Risk Advisors, LLC.
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