Looking for Professional Liability Insurance in South Carolina?
Crescent Insurance Advisers has your back.
Professional Liability Insurance (also known as Errors & Omissions Coverage) covers a wide range of professionals whose exposure lies within the scope of performing their job. If a mistake was made that resulted in substantial financial loss
Who needs Professional Liability Insurance?
Lawyers, Doctors, Architects, IT Professionals, Real Estate Brokers, Insurance Agents, Consultants, and Engineers are just a some of professions who need to be properly covered by Professional Liability Insurance.
If you are in one of those professions and/or your business relies on your professional expertise, you’re expected to have a certain level of training in your industry or field. Your services and/or advice must meet standards set by your state, industry, and/or written client contracts and agreements.
Failure to meet these standards could result in a substantial financial loss for your client(s), which is why they ask for proof of insurance before you are allowed to work – they will sue you. This is where Professional Liability Insurance comes into play, and why Crescent Insurance Advisers is your go-to insurance firm for Professional Liability!
How does Professional Liability Insurance work? What does it cover?
Professional Liability Insurance triggers in a few different situations:
- You make a mistake that costs your client(s) money
- Undelivered results/services
- Negligent services
No matter how careful you are, making mistakes is a fact of life. After all, we’re human. If one of these work mistakes causes a financial loss for one of your clients, it could be problematic for your business.
Professional Liability kicks in if one of your clients attempts to sue you because of your mistake.
Sometimes the product/service you describe in your client contracts do not work the way it was represented to the client. Should that happen, and you get sued, Professional Liability Insurance applies.
Example: A business consultant recommends you buy a high-priced piece of equipment based on high income projections and those projections end up being way off, resulting in a financial loss for the client. If those projections were wrong because of the consultant’s negligence, that client can actually sue to make up those losses and cite their contract for support.
Your expertise can sometimes be a double-edged sword. It can help you earn clients, but it can also set really high expectations.
Example: Architects have the skill and education to design buildings that both meet client demands and comply with building codes. But let’s say an architect makes an oversight that compromises a building’s safety. The building owner can sue for negligence (the legal standard of being unreasonably careless).
Unfortunately, negligence suits can be pricey. A court may award the client damages, but it can also monetarily punish you to deter future recklessness.
What to do next
Keep in mind that Professional Liability only covers the “economic” or financial losses suffered by clients and/or third parties, as opposed to bodily injury (BI) and property damage (PD) claims. This is because the latter two types of loss are typically covered under commercial general liability (CGL) policies, which Crescent Insurance Advisers can also help with.
If you’d like a personalized Professional Liability proposal for you and your business, Crescent Insurance Advisers is here to guide you. Call our office today, or start your quote online in a matter of seconds.