Not necessarily, but you are definitely safer with a Professional Indemnity policy on hand. (PI) protects against claims of negligence in the performance of professional services. This type of insurance can be extended to cover breach of statutory or fiduciary duty, breach of contract or regulatory rules, libel and slander. There are two categories of businesses that purchase PI: voluntary and involuntary.

Common industries to purchase PLI include:

• Accounting and Financial Services
• Consulting
• Information Technology
• Legal (involuntary)
• Medical (involuntary)

Negligent advice and delivery of services are not restricted to the traditional professions such as law, medicine, accounting or architecture. The daily practices of your company and your people can leave you exposed. The provision of services and offering of advice can leave you open to allegations of negligence and the ever-increasing possibility of civil actions against your company or its employees.

Call us for help in determining the most appropriate coverage to suit your particular profile and needs.

 

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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).

Source: Insurance Information Institute, “Do I need professional liability insurance?” iii.org website. Accessed November 30, 2015. http://www.iii.org/individuals/business/optional/professionalliability/

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Professional Liability Insurance, (also called Professional Indemnity Insurance), represents important protection for professionals in many industries as it protects against potential negligence claims. Whether you are an Architect or Lawyer; Physician or Accountant; Medical professional concerned about Medical Malpractice claims, or someone providing a professional service in one of a number of business categories, a PLI policy could protect you and your business from claims of failure to perform, financial loss and error or omission of the products or services sold. Additional coverage for breach of warranty, intellectual property, personal injury, security and cost of contract can also be added.

The primary need for PLI coverage is that a general liability insurance policy may only respond to a bodily injury, property damage, personal injury or advertising injury claim. However, typical reasons for making claims on PLI policies are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. For example, if a software product fails to perform properly, it may not cause physical damages, personal or advertising injuries, therefore the general liability policy would not be triggered. It may, however, directly cause financial losses which could potentially be attributed to the software developer’s misrepresentation of the product capabilities.

If you are at all concerned about potential professional liability issues, please call us for help in determining the most appropriate coverage to suit your particular business category and needs.

 

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Dear Valued Customer,