Professional Liability Insurance

Also known as Errors and Omissions insurance, Professional Liability insurance is your most critical coverage.  Professional Liability insurance protects you and your business from potentially catastrophic litigation caused by legal charges of professional negligence or failure to perform your professional duties.  This might include errors and omissions resulting in loss of client data, software or system failure, claims of non-performance, or negligent oversell.

If you are a subcontractor working on a client site, your client may require that you provide proof of General Liability and Professional Liability insurance.

Your business provides a highly specialized service that many of your clients don’t fully understand.  At the same time, the projects you work on are highly sensitive and critically important to your client’s business.  But you’re only human.  If your errors and omissions result in loss of client data or a software or system failure, or if you fail to perform your duties, your client may be left unable to operate its business.  This risk opens you up to litigation.  That’s where Professional Liability insurance comes in.

For example, if your work damages a company’s client database, the cost to reconstruct that database may exceed typical costs for replacing hardware and software.  In fact, some client companies have won extremely large settlements when subcontractors have lost irreplaceable data.  Professional Liability insurance would cover such costs, within policy limits.

Whether a claim is baseless or not, mounting a legal defense can bankrupt your company.  Professional Liability insurance protects your company and your future by responding to professional liability claims and helping you keep your business operating as potential lawsuits move through the courts.  Without Professional Liability insurance, your company could be financially overwhelmed.