Any business or entity that offers a service or advice is liable for damages caused as a result of their negligence. Liability extends to errors and omissions in a professional capacity or failing to meet a deadline. Whether or not guilt is ascertained and blame apportioned, the litigation which follows a client’s accusation of mistakes made or information omitted remains costly. Professional Liability insurance covers you, in a nutshell, in the unfortunate event that you are accused of not doing your job properly. Since human error will always be possible, any service provider, big or small, designer, or consultant, among others, should safeguard their business and integrity with professional liability coverage.

Why do you need Professional Liability Insurance?

Anyone offering professional advice or services for a fee should consider obtaining Public Liability coverage. Over the past decade, there has been a marked increase in independent consultants and small businesses, offering specialized skills, knowledge, and advice, who are at risk of being held accountable for losses incurred as a result of these services rendered. This insurance protects business interests and property in the event of damages or injuries suffered by third parties, clients, or visitors due to yours or your employees’ negligence.

What does Professional Liability Insurance cover you against?

• Professional Negligence, meaning mistakes in your professional services
• Misrepresentation, providing information deemed to be misleading or faulty
• Libel and Slander arising while presenting professional services
• Inaccurate Advice when providing faulty or incorrect professional information

What costs will Professional Liability insurance cover?

• Legal defense and legal expenses relating to court proceedings, whether justified or not.
• Compensation awarded to a client who successfully sues and is awarded compensation or the amount lost as a result of your advice.
• Run-off insurance covers you for future claims in the event you cease operations.

Who should have Professional Liability Insurance?

Any business offering professional services or advice will benefit from PL cover in the event a client, visitor to the business premises, or third party sues for loss, injury, or damages. Professional liability insurance covers bodily injury or property damage resulting from the provision of professional services.

This cover is not a legal requirement for most businesses, but it is for the following professions: solicitors, healthcare professionals, financial advisers, architects, and chartered surveyors.

Various professions will require varying forms of professional liability insurance. For example, health professionals require malpractice cover, which is a very specific professional liability insurance for the medical field. It covers higher claim costs resulting from medical claims against medical professionals such as doctors, dentists, and nurses.

Another example is the PL policy known as Errors and Omissions Insurance (E&O), which covers accounting, real estate, and tech professionals.

When faced with the prospect of legal fees, forced downtime, a court ruling, and potentially cessation of trade, the cost of Professional Liability insurance cover is quite negligible.