Examples of situations at risk
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.
Who is a professional?
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.
Managing professional liability risk
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.