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| Do I need professional liability insurance? |
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Professionals that operate their own businesses need professional liability insurance in addition to an in-home business or businessowners policy. This protects them against financial losses from lawsuits filed against them by their clients.
Professionals are expected to have extensive technical knowledge or training in their particular area of expertise. They are also expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they cause to another person or business. When liability is limited to acts of negligence, professional liability insurance may be called "errors and omissions" liability.
Professional liability insurance is a specialty coverage. Professional liability coverage is not provided under homeowners endorsements, in-home business policies or businessowners policies (BOPs). |
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The term professional, characterized by a person who posses specialized knowledge and expertise, labor or skill that is predominantly mental or intellectual. Applies to:
» Architects
» Engineers
» Environmental consultants
» Attorneys
» Accountants
This has been interpreted by the courts as an increased standard of care that requires the professional to render services in the practice of his profession that exercises the skill and knowledge normally possessed by members of that profession in good standing in similar communities. Professional liability insurance arose from this legal duty to clients and third parities for breach of contract and negligence lawsuits.
for more information please contact our office |
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