Insurance Analysis

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects you and your company if a client claims they have suffered financially as a result of an error or an omission, on your company’s part, in the delivery of professional services. Professional liability coverage is separate from general liability insurance, which primarily covers bodily injury and property damage.

Companies that deliver professional services typically opt to obtain E&O insurance. These policies are generally issued in increments of $1,000,000 in coverage with deductibles from $1,000 to $25,000 per claim. A number of insurance companies offer specialized professional liability policies developed for specific professions. It’s often prudent to work with a broker who deals with a variety of insurance carriers.  That way, you can entrust your broker to find you the best coverage, at the most affordable rate, by shopping the options on your behalf.

Please be aware that virtually all professional liability insurance policies are issued on a claims-made basis. This means that you are only covered for work that is done during the policy period and for claims that are filed during the policy period. For example, if you cancel your E&O insurance, and no provision is made for an extended reporting period, all coverage stops immediately, as if you never had the policy.

Also note that every insurance policy contains exclusions. Therefore, you need to analyze the professional risks that are most threatening to your business and seek insurance that covers those specific risks. Your agent can help you determine the critical areas you for which you should invest in coverage and find you the best policy options and rates. 

Keystone Insurers Group can help you identify a professional liability insurance policy that fits your business’ specific needs.  Contact us today to get started - 814-629-5607!

ML