What is Professional Liability?
Nowadays, it's not a surprise to hear about professionals or businesses getting sued by their clients for various reasons. Professional mistakes, malpractice, or negligence are some of these reasons. Whether the claims are true or not, the court costs or settlements could lead to devastating financial loss for your business. Professional Liability Insurance, also called Errors and Omissions Insurance(E&O insurance), helps you or your company cover legal defense costs depending on your policy limit.
Professional Liability Insurance Coverage
Professional Liability Insurance helps protect your business from claims of:
Even experienced professionals make mistakes. These mistakes could lead them to court if the client sues them, regardless of whether these claims are real or not. Professional Liability Policy will help cover your:
How does Professional Liability Insurance Work?
Many professional liability policies are on a claims-made basis. It means that only the claims filed during the policy period are covered. You may include a retroactive date and an extended reporting period to cover claims that may arise from past occurrences.
A retroactive date is a specified date in your policy that determines whether your policy will cover losses in the past. If, however, the claims happened before this date, the costs for settlement, legal judgment, or attorney fees will be your responsibility.
The extended reporting period, on the other hand, helps cover claims filed within a specified time after the expiration of your policy. Typically a 30- to 60-day period, you may have this extended to a year or more for an additional cost.
Although most PL policies are on a claims-made basis, some can be on an occurrence policy. It means claims that occurred during your policy period are covered even if the claim gets reported after your policy has expired. Learn more about claims-made and occurrence policies by calling a risk advisor from Arena Insurance Brokers, Inc. at (913) 363-1300.
What does Professional Liability not cover?
Professional liability doesn't cover claims from occurrences before your policy's retroactive date. It also doesn't cover filed claims after your policy's extended reporting period.
Professional Liability does not cover every kind of liability claim. It won't help with claims of:
Contact Arena Insurance Brokers, Inc. to learn more about Professional Liability Insurance. Get a quick quote by clicking here or calling Arena Insurance Brokers, Inc. at 913-363-1300.
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