Is there a difference between these coverages?
If you run a business, then your agent has probably recommended that you secure professional liability or errors and omissions insurance. But what are these coverages, and do they cover the same things? Here’s what you need to know about these essential commercial coverages.
- One Coverage, Many Names
First, it’s important to understand that professional liability and errors and omissions insurance are the same types of coverage. This coverage can also be referred to as malpractice insurance. The names can be used interchangeably, depending on the industry that your business works in. For instance, architects, accountants, and consultants usually use the term professional liability insurance. Real estate and IT professionals tend to call it errors and omissions insurance. Those in the medical and legal sectors refer to the coverage as malpractice insurance.
- The Protection is the Same
Regardless of what your industry call is, professional liability insurance offers coverage for businesses who are accused of making costly mistakes by their clients. For instance, a business would access their professional liability insurance if a client holds it liable for breach of contract, work oversight or mistakes, providing substandard or incomplete work, missed deadlines, and so on. Even if there is nothing wrong with the quality of your work, a dissatisfied client could still sue your business for a perceived issue. Fortunately, your professional insurance would handle the costs of the claim, including legal fees, court costs, and settlement expenses.
- Benefits of This Coverage
The obvious benefit of professional liability insurance is that it helps you cover the cost of expensive claims. However, having this type of insurance can also help you be more competitive. Because many clients require companies to carry this coverage before hiring them, already having professional liability protection will increase the chances of earning their business.
This is what you need to know about professional liability and errors and omissions insurance. Do you have additional questions about your commercial coverage? If so, then contact the experts at the Scavone Insurance Agency Center LLC in White Plains, New York today. Our experts are eager to assist you with all your business insurance needs.