PLI is known by a number of names, including Errors and Omissions, E&O, CPL, and PII. Essentially, it is designed to protect you in case somebody decides to pursue legal action due to negligence in the provision of your services. People buy this coverage to safeguard their assets and to cover the cost of a legal defense. Irrespective of whether or not you are at fault, you will still need to defend yourself, and this included without bias.
As with all types of commercial liability insurance, you need to balance up the potential costs with the risks you face in your business. If you provide professional advice or services, then buying E&O insurance is a sound choice.
If somebody files a lawsuit against your company claiming the advice or services you provided resulted in financial harm due to negligence or errors on your part, or you failed to provide a service; having this coverage would provide essential financial protection towards the cost of a legal defence and any subsequent damages.
In some cases, a client or potential client could insist you have a specific level of indemnity coverage before they do business with you. Professional liability coverage could also be state-mandated in certain states, particularly for people in professionals such as Doctors and Attorneys. Regardless of the size of your business, a costly lawsuit could leave you exposed if you don’t have the right amount of professional liability coverage in place. Medical and Legal malpractice insurance are specialist types of E&O coverage tailored to the sectors they serve.
Some of the typical types of people who buy professional liability coverage include:
IT Professionals, Consultants, Doctors, Architects, Attorneys, Accountants, Designers, Doctors, Engineers, Insurance Professionals, Investment Advisors, Real Estate Agents, and more.
Commercial Liability insurance provides essential protection that is not otherwise covered by any other type of business liability insurance. If you have a service-based business or you offer advice, and a client takes legal action against you for negligence, it gives you coverage for the cost of preparing a legal defence, and it will cover damages that arise following a civil lawsuit. Depending on your profession and the sector you serve, there are different types of E&O coverage you can buy.
There are two main types of E&O coverage available; they are ‘occurrence’ and ‘claims made’. The majority of professional liability policies are written on a claims-made basis. This means that the PLI needs to be in effect when the alleged event took place, and the claim is made.
If you, as the business owner decides to take retirement or even change careers, then it would be prudent to speak with us about extending coverage. This will then provide coverage for events that occurred during your initial period of coverage, regardless of when the suit is filed.
E&O insurance will not cover illegal acts, intentional wrongdoing, employee injuries, false advertising or workplace disputes.
As a commercial insurance agency, we understand the importance of balancing the right levels of coverage with the budget in mind. Talk with a member of our team about your commercial insurance needs today.
Buying commercial liability insurance is essential for your personal and professional protection. With so many types of insurance to review, it’s easy to come unstuck or get overwhelmed by the details. As your local commercial insurance agent in Woburn, we offer a personalized service, and we build insurance packages that are tailored to your individual needs.
We’ve been in business for over twenty years with industry experience of over forty. Here are just a few reasons why clients enjoy doing business with us.
If you want to work with an insurance agent you can trust, the team at Tanna Insurance can help you protect your business, your people, and your assets.