Sometimes even the most dedicated and diligent professional can inadvertently provide advice or a service contrary to their customer’s wants which may create a liability. When this happens, Professional Liability Insurance shields the professional from financial loss. In the past, this insurance was called Errors and Omission Insurance. We like this term because it states that coverage exists for your service based on something you did incorrectly or failed to do.
Whether you are an engineer, or architect, if you are conducting business without the protection of professional liability coverage, you assume 100% of the risk associated with the activities associated with the business or service you provide. This policy protects you and your firm from the financial loss associated with a professional liability claim.
Insurance protects you in two ways:
First- it defends you! You want a company on your side if you are brought into a legal battle due to your service offering. Insurance has a duty to defend and they do not want you to lose!
Second- it indemnifies you! That means that if you are found to be liable of financial harm due to your service- the insurance will pay out on your behalf- minus any deductible you may have. We understand both of those benefits. Ask us how we can write how your deductible works so you only pay if you are liable for a loss…
In today’s complex world, we often expect a higher standard of expertise from hired professionals. Architects and Engineers clearly fall into this category! Architects and Engineers are well trained professionals that provide valuable advice/ council to their clients. When professionals do not meet that expectation, they most likely are legally liable. A professional liability policy can save professionals or businesses thousands of dollars by shielding them from potential lawsuits, settlements, and accusations.
Consider an engineering firm that provides survey services as part of their offering. If a survey crew were to make a mistake that caused $200,000 of rework and delay due to an error- they would be liable. Or the structural engineer who provides incorrect information in the design phase which causes a load bearing wall to collapse after construction is completed?
Professional Liability Insurance protects Architects, Engineers, and other Design Professionals from Professional mistakes. Consider a client who builds a house according to an Architect’s plan. The house proceeds to get water damage and a mold problem and the client blames the Architect for the damage to the house because it was their design. A Professional Liability policy will help pay for lawsuit-related costs, even if the lawsuit is found groundless.
In the past, some companies have won large settlements due to mistakes. A professional liability policy would cover the costs of these mistakes up to the policy limits.
Professional liability coverage protects you and your company from errors made or perceived errors by the client. Most specialized liability insurance policies cover judgments, defense costs, and settlements. Even if the accusations are groundless, the cost to defend a case in court can run upwards of one hundred thousand dollars. For the small business owner this cost can bankrupt a company or an individual and have a lasting effect on the bottom line for larger companies.
The main reason professionals purchase liability coverage is because a standard general liability policy insures you if you or your company hurts someone or their things. In the world of insurance, we call this property damage and bodily injury. Professional liability insurance covers common claims such as negligence, incorrect advice, misrepresentation, and bad faith.
Most architects and engineers carry Professional Liability Insurance. However, other professionals and business owners are in dire need of the protection afforded by the policy. In the race to stay competitive in today’s economy, professionals without specialized liability coverage are at a disadvantage. Often times, professional firms purchase this coverage due to an insurance requirement of a contract. Once a firm understands the risk they are taking, they purchase this insurance as a key component to their risk management strategy.
Davidson & Associates Insurance located in beautiful Vancouver, WA believes that Professional Liability Insurance is essential for financially protecting all professionals and service businesses. We insure many professionals in the region.
Unfortunately, we live in litigious times and all professionals and service businesses are vulnerable to lawsuits. The friendly staff at Davidson & Associates Insurance can help you find the right insurance to fit your business need.
Liability Insurance for Professionals is known by other names in specific industries. For instance, legal and medical professions call it Malpractice Insurance while consultants and brokers know it as Errors and Omissions Insurance, or E&O.
The coverage you need depends on the type of business and the perceived risk associated with the business. Davidson & Associates Insurance can evaluate your business and recommend a policy which adequately covers your business needs.
Don’t waste another minute worrying about your financial exposure. Complete the no-obligation quote form today and allow Davidson & Associates Insurance to shield you from unwanted lawsuits!