FLORIDA/TEXAS—Professional liability insurance, also known as errors and omissions insurance (E&O), is required in some states. Legal and medical malpractice insurance policies are special categories of professional liability insurance.
Medical Malpractice Insurance coverage protects healthcare providers against patients who file suits against them under the complaint that they were harmed by the professional's negligence or intentionally harmful treatment decisions. Malpractice insurance also covers the death of a patient.
Legal Malpractice Insurance should be evaluated based on higher risk areas that may include transactions involving securities, intellectual property, trusts and estates, plaintiff’s personal injury cases, and newly emerging areas such as loan modifications. These insurers are licensed by the insurance regulating authority in each state in which they write coverage.
There are two types of professional liability polices: claims-made and occurrence. Professional liability insurance will pay the cost of legal defense against claims and payment of judgments against you, up to the limit of the policy. Coverage does not extend to non-financial losses or losses caused by intentional or dishonest acts. Other fees, such as licensing board penalties, may also be included. Policies will generally have a deductible between $1,000 and $25,000. The amount of professional liability insurance you will need and how much it will cost depends upon the size of your business and the level of risk it poses.
General liability coverage will only protect your business against 3rd party damages for which you are responsible (i.e. bodily injury to others or damage to their property ). Professional liability will protect you from claims of neglect or professional errors. Claims not covered by general liability insurance that are covered by professional liability insurance include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.
A list of other professionals that should consider professional liability insurance includes but it’s not limited to:
- Graphic designers
- Information technology (IT) consultants
- Investment advisors
- Management consultants
- Real estate agents and brokers
- Software developers
You should ask your agent about including professional liability coverage in your Commercial Package Policy (CPP) as an endorsement. Business Owners Policy (BOP) does not usually cover professional liability, nor is it covered if you have an in-home policy.
In summary, if your business provides professional services or advice to other businesses or individuals that could result in losses for your client, and you could be held responsible— then you should purchase professional liability insurance.
At Garzor Insurance we care about your business. We can help you find potential coverage gaps and discuss your unique insurance needs to find you the professional liability policy with coverage that matches your specific business needs. Our experienced professionals are dedicated to providing commercial insurance, including BOP coverage,business general liability, and professional liability coverage in Florida as well as Texas, and now many other states across the U.S. If you also have questions about truck or other commercial vehicles insurance, or any other business insurance aspects, please do not hesitate to visit us online at Garzor Insurance, or you may want to call us directly at (321) 206-8035.
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Main Office - Orlando, Fl
Office Number: 321-206-8035