Many companies are leaving themselves exposed to lawsuits for errors and other issues that crop up in their work because they lack professional liability insurance.
Traditionally it’s been architects, accountants and lawyers who would purchase this coverage, but with more work like coding, programing and other ventures spawned by technology, the need for this type of protection has grown.
In fact, a recent report by Forbes Insights and The Hanover found that 40% of small business owners believe they face professional risks, yet they have not purchased professional liability coverage as part of their overall insurance package.
Many more firms are in the business of consulting or providing hi-tech services. In addition, the rampant growth of social media has also fueled the need for this type of coverage.
Professional liability insurance, also called errors and omissions insurance (E & O insurance), protects your business if you are sued for negligently performing your services, even if you haven’t made a mistake.
Businesses that need professional services coverage include:
- Technology and software firms
- Health, beauty and well-being services
- Therapists
- Architects and engineers
- Real estate agencies
- Consultants
- Marketing and advertising firms
- Medical professionals
- Wedding and event planners.
Coverage gaps
If you are relying solely on a general liability policy, it may not cover you in the event of a lawsuit over an issue with the services that you have rendered.
Professional liability coverage can be especially important if you have customers who sue you for non-performance of your products or services, or withhold payment due to a contract dispute.
This is especially true if you are:
- Performing consulting work, training or other services for customers.
- Involved in work requiring special licenses.
- Designing, recommending, installing or testing products.
- Designing software or apps to a client’s specifications.
What it covers
Negligence – Professional liability insurance coverage can protect you and your business against actual or alleged errors and omissions that may occur while providing your professional services.
These claims can include anything from giving incorrect advice or omitting a piece of information, to failing to deliver your service within a desired timeframe.
Legal costs – The policy includes covering your legal costs in defending against a claim. Some insurers will even appoint an attorney to represent you.
Examples
- A marketing consultant develops a drip e-mail campaign for a retailer that doesn’t generate the number of leads expected.
- A management consultant develops an organizational strategy to improve communications in a company, but problems persist at the client and communications don’t improve.
- A software developer fails to develop an app to the client’s specifications.
In all of these examples, a client may sue for damages. And in every instance, a professional liability insurance policy should help protect you and your firm.
BGES Group, located in Larchmont, N.Y. are New York Construction Insurance Specialists that represent 50+ companies and all the BEST general & umbrella liability programs! We offer every coverage you need including property, builders risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability and group health. We are extremely responsive, responsible, trustworthy, fast, minimize your insurance headaches, we don’t charge ridiculous policy or service fees and when you call, text or email, whatever time of day, even weekends, we are there to help YOU!
BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being cancelled, losses causing difficulty getting coverage, in the middle of an audit dispute, payrolls misclassified, whatever your issue, we can help! We have special programs for: Auto Service, Contractors (especially New York), Limousine Services, Logistic Companies, Manufacturers, Recyclers, Truckers, we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that if we can get you into their pricing is excellent, offers long-term coverage stability and can cover multi-state operations. Program takes the hassle out of doing annual audits too.
If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
e-mail: bgesgroup@gmail.com
website: http://www.bgesgroup.com
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