As a professional providing expertise in your area of specialization you’re open to exposures that go beyond general liability risks. Claims stemming from allegations of incorrect advice or failure to perform professional services could lead to a lawsuit. Even if you haven’t made a mistake, you could still be sued. Professional Liability, also known as Errors & Omissions (E&O) insurance, is designed to step in and cover the legal fees and any resulting settlements or judgments from these types of lawsuits – protecting you and your business from potentially crippling costs. A policy, in addition to covering the business and its employees, can also be designed to include protection for independent contractors, part-time workers, or even volunteers.
Professionals who have extensive technical knowledge or training in their particular area of expertise and who are expected to perform the services for which they were hired should secure Professional Liability insurance. Additionally, often clients require consultants or contractors to have a minimum level of Professional Liability insurance coverage before they engage in their professional services. Some examples of professionals needing E&O include:
E&O insurance is not standard, with each policy requiring tailored coverage to fit a professional’s exposures. At Arroyo, we understand the unique risks faced by the professions we serve and know how to customize coverage to your needs. An IT/technology consultant, for example, would most likely need software copyright infringement coverage as part of its policy. This wouldn’t apply to an accountant.
We will also help you select the deductibles and coverage limits you’ll need to fit your operation’s risk profile. As our client, we’ll continually review the potential need for additional or greater protection, as your business needs change due to business growth or contractual requirements.