If you provide professional services or advice, you need a Professional Liability policy. Professional is also known by some as Errors and Omissions Insurance Coverage. This coverage protects businesses and professionals from claims of negligence, mistakes, or failure to deliver services as promised. This type of claim is not covered under your Business General Liability Insurance.

What Does Professional Liability Cover?

Professional Liability Insurance helps cover legal fees, settlements, and court judgments related to claims such as:

• Negligence – A client sues, alleging that your mistake caused them financial loss.
• Misrepresentation – A client claims you misled them about a service or outcome.
• Inaccurate Advice – If your advice leads to financial or reputational damage for a client, they may file a claim.
• Failure to Deliver – A client alleges that you didn’t meet contractual obligations.

Even if a claim is baseless, defending yourself in court can be very costly. Professional Liability helps cover these legal expenses.

Who Needs Professional Liability Insurance?

Many professionals should consider Professional Liability coverage, especially those who provide services, consulting, advice or expertise. Here are some of the most common professions that need this insurance:

• Doctors & Healthcare Professionals – Physicians, nurses, therapists, and other medical professionals can be sued for malpractice. Some common claim examples for Doctors are Misdiagnosis, Surgical Errors, Medication Errors.
• Lawyers & Legal Consultants – Attorneys may face lawsuits over errors, missed deadlines, or perceived negligence. Some common claim examples for Attorneys are; errors in Contract Drafting, Failure to provide competent representation, missed deadlines.
• Accountants & Financial Advisors – Errors in financial planning or tax preparation can lead to significant losses for clients. Some common insurance claims are; Tax Filing Errors, Fraudulent Financial Reporting.
• Architects & Engineers – Design flaws or structural issues can result in lawsuits. Some common insurance claims; Design Flaws, Project Delays, Failure to Meet building codes, defective plans.
• Real Estate Agents & Brokers – Clients may sue over errors in contracts, misrepresentation, or property disputes. Some common insurance claims include; a misrepresentation of property, Failure to disclose issues, errors in contract preparation.
• IT Consultants & Software Developers – A system failure or security breach could lead to liability claims. Some common professional liability insurance claims include; Cybersecurity Failure, System Malfunction, Failure to Deliver Functionality.
• Marketing & Advertising Professionals – Copyright issues or misleading advertising can result in lawsuits.
• Consultants & Business Coaches – If advice leads to financial loss, clients may seek damages. Some common Professional Liability Insurance claims; Bad Advice, Breach of Contract, Confidentiality Breach.

Why Is Professional Liability Important?

Even the most experienced professionals make mistakes—or get accused of them. Professional Liability Insurance provides, insurance, financial protection and peace of mind.

If you provide professional services, don’t wait until a lawsuit happens to get coverage. Contact Ameriguard Insurance today to discuss your options and ensure your business is protected. We work directly with a Broker that specializes in Professional Liability Insurance. We will be able to shop your Professional Liability policy with 8 different companies and provide you with the comparison coverage terms. It is very easy to get a quote. To start, we need your website, description of operations, annual sales totals. That is it! To get started you can call us at (763)767-0522 or fill out the short contact form listed below.