How would your business respond—and survive—if it made such a severe mistake that it cost a customer tens of thousands of dollars? Or, even more frustrating, what if a customer blames—and sues—your professional services firm for loss when you’re not at fault?
Professional Liability insurance, also known as Errors and Omissions (E&O) coverage, is designed to protect your business against claims that professional advice or services you provided caused a customer financial harm due to actual or alleged mistakes or a failure to perform a service.
In addition to responding to your customer’s financial losses, professional liability coverage can help your business:
What Types of Businesses Require Professional Liability Insurance?
Any business that provides its clients with expert guidance, information, or knowledge-based services—such as a bookkeeper, marketing consultant, or executive recruiter—can benefit from professional liability coverage. Certain specialized or licensed businesses like architecture and engineering firms, and software development companies can find professional liability solutions designed specifically for their sector.
What Types of Claims are Made Against Professional Service Firms?
Professional liability claims range widely. However, they are generally based on a customer’s perception that a professional services firm has:
Your business can also help prevent professional liability claims from arising or limit their severity by taking key steps to limit errors and disputes in the first place. Explore Chubb Elite Professional Indemnity Insurance here.
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