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.
Whether you are an accountant, doctor, lawyer, 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 them from the financial loss associated with a professional liability claim.
In today’s complex world, we often expect a higher standard of expertise from hired professionals. 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 the software engineer who damaged a client’s database. The client’s business was not able to generate income due to the computer system being down for a couple of days. As a result, the client sued for loss of income. How about a freight company who sends a time-sensitive shipment to South America instead of South Africa? The client loses the sale worth two hundred thousand dollars. Who will pay for the loss? Or the structural engineer who provides incorrect information in the design phase which causes a load bearing wall to collapse after construction is completed?
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 only covers property and bodily damages. This type of insurance covers common claims such as negligence, incorrect advice, misrepresentation, and bad faith.
Most accountants, architects, engineers, lawyers and doctors carry 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.
Vancouver’s Davidson & Associates Insurance believes that Professional Liability Insurance is essential for financially protecting all professionals and service businesses in the Vancouver area.
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!