46098 Yale Road Chilliwack, BC V2P 2L7
Directions46098 Yale Road Chilliwack, BC V2P 2L7
DirectionsAt Wheeler-Homemakers Insurance, we know that no matter what type of business you own or the industry you work in, having a business insurance policy that is tailored to meet your business needs can make all the difference in the world. That is why we always take the time to get to know our clients and their business needs before making any policy recommendations. Get in touch with us today to learn more about professional liability insurance and to find out which policies you should consider purchasing for your business.
Request QuoteProfessional liability insurance, also referred to as errors and omissions insurance (E&O), provides essential protection for individuals or businesses in the event that a client holds them accountable for professional services or advice that may have failed to deliver the expected results.
While many contractors and businesses possess commercial general liability insurance, it is important to note that this type of policy solely covers bodily injury or property damage caused to third parties. It does not extend coverage to financial damages resulting from professional services or advice. This is where professional liability plays a crucial role.
The majority of professional liability insurance policies extend coverage to include judgments, settlements, and defence expenses; however, it is important to note that coverage does not include criminal prosecution and may not cover all forms of legal liability under civil law. Make sure you speak to your insurance broker to find out exactly what is and is not covered by your policy.
Some of the different liabilities that are covered by professional liability insurance include:
Determining the need for professional liability insurance is dependent on the nature of your profession and the potential risks associated with it. Professionals who provide services or advice, such as consultants, lawyers, doctors, accountants, and architects, are among those who typically require professional liability insurance. It serves as a crucial safeguard in protecting against claims made by clients alleging negligence, errors, or omissions in the services provided.
The cost of professional liability insurance can vary depending on factors such as the type of profession, the level of coverage required, the claims history of the insured, and the limits and deductibles chosen. Insurance providers typically assess these factors to determine premiums. Make sure to speak with your insurance broker to get an official estimate for professional liability insurance.
The two primary types of professional liability insurance are claims-made policies and occurrence-based policies. Claims-made policies cover claims that are both made and reported to the insurer during the policy period. It is important to note that claims-made policies have a retroactive date stated on the policy as to when the coverage will respond from. This means that the date could be from a prior year policy and even from another insurance company. Occurrence-based policies, on the other hand, provide coverage for claims arising from incidents that occurred during the policy period, regardless of when the claim is actually made. It is important to understand the distinctions between these types of policies, as they can impact coverage and the handling of claims.
