Professional liability insurance – also known as errors and omissions – cover the risks of prosecution arising from acts of fault, omission or professional negligence for the services provided by your company or organization.
Your company provides financial advice. Advice from one of your employees, who is a certified financial advisor, leads a customer to lose their life savings. The person seeks compensation from your organization.
Your private clinic provides health care services. Your employee, a health care professional, provides care to a client. The person suffers an injury as a result of the provision of services and sues your clinic and the professional alleging professional negligence.
There is no single definition of who is considered a professional. Ask your insurer how they define a professional. It will help to determine if any of your employees or volunteers are in this category.
Employees or volunteers - who act as professionals in their duties for your organization - should consider a professional liability insurance to ensure that their personal interests are covered.
Carefully review all activities of the organization. Depending on the programs and services a non-profit organization or a business offers, it may require that certain types of professional liability insurance be in place.
Generally, professional liability coverage is subscribed by a professional order or by the company or a combination of both.
Talk to your insurance representative to determine if your business needs errors & omissions coverage.