If you have general liability insurance for your business, you have taken an important first step in making sure you are properly covered. General Liability protects your business from claims for bodily injury, personal injury, and property damage.
But if you are a service-based business, it’s important to understand that General Liability does not protect against claims of professional negligence. Professional services (e.g. architects, consultants, electricians etc.) are at particular risk of claims like these.
What’s professional negligence? It’s a breach of the duty of care between professionals and their clients. Clients expect you to help their business, not harm it.
For example, if a plumbing repair fails and causes an entire office to be flooded, you could be considered in breach of the duty of care. It is a mistake that costs your client dearly, even if it was not intentional.
We all make mistakes. As a business owner, you have a lot of plates spinning at once and it can be easy to overlook something important.
For this reason, it is crucial to reduce risk and make sure you are covered financially for legal fees and compensation in the event that something goes wrong.
The best way to do this is to get the right professional liability insurance (also known as Errors & Omissions, or E&O Insurance).
In addition to covering mistakes made after you start coverage, E&O also has the ability to cover mistakes from the past. Exact coverage depends on the company, but many offer the option to pick the past date you want coverage to start from, extending your protection backwards as well as forwards.
Don’t let your business finances and reputation suffer. Get the right coverage, at the best price.
Let us help you get started with a tailor-made business insurance quote that includes E&O!
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