By owning your own business, you open your finances and assets up to increased risk through the liabilities you will encounter. You may know about the importance of carrying comprehensive insurance, but you might still question who needs professional liability insurance? If you have only considered carrying a general liability policy, your exposures may be covered if you think about your operations. However, if you are a profession, with certain experience and training in an area of expertise, you have more risk.
The Areas of Concern
Your job is to provide a service, and your clients expect that you will conduct yourself in a manner that complies with the standards of your profession. If you do not deliver these services, your customer may hold you liable in a court of law for any resulting damage or harm is done to their business or their own account. The primary areas of coverage include areas where errors and omissions have created an adverse situation, and the team at Arroyo Insurance says that errors and omissions coverage is closely aligned with professional liability. Examples of this could include:
- You advised on an investment that created substantial financial loss
- You didn’t file paperwork correctly, causing fees or a lost sale
Even though your mistake was accidental, the legal responsibility for restitution lies with you. A time when this coverage wouldn’t apply is when the acts were willfully and criminally committed.