Do I Need Professional Liability Insurance?

Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, is essential for professionals who provide advice, service, or expertise to clients. It is designed to protect you and your business in case a client claims that your professional services caused them financial loss or harm. Professionals such as doctors, lawyers, accountants, consultants, coaches, architects, engineers, and technology professionals, often have this insurance.

Even the most skilled professionals can make a mistake or face misunderstandings with clients. If a client sues you for alleged errors, omissions, negligence or inadequate work, having Professional Liability Insurance can help cover the legal costs, including attorney fees and court expenses. Even if you are not a fault, defending against a baseless claim can be time-consuming and costly. Professional Liability Insurance can also provide coverage for damages that may be awarded to the client and help protect your business assets and personal finances.

Today, most clients especially larger corporations or government entities, require you to have Professional Liability Insurance as part of the contractual agreement before they work with you. Having this coverage could open up more business opportunities for you.

Professional credibility and reputation are essential for any successful business. This coverage shows your clients that you take your work seriously and are financial prepared to handle potential issues.

The cost of Professional Liability Insurance will vary depending on the size of your business, the industry you are in, your location and the amount of coverage you will need. RaisinBread can provide you with a personalized analysis based on your business activities to adequately protect you and your business.