Jones Family Insurance - Insurance in Fort Myers Florida

Professional liability and errors and omissions insurance both protect businesses from expensive lawsuits caused by unsatisfactory work. The language used may differ by industry.

the-importance-of-insurance-for-your-small-business

Professional liability vs. E&O vs. malpractice insurance

Many industries use the terms “E&O insurance” and “professional liability insurance” interchangeably. You may also hear these policies called “malpractice insurance.”

Common industry names for this policy include:

  • Professional liability insurance for architects, accountants, and consultants
  • E&O insurance in the real estate and IT sectors
  • Malpractice insurance in the medical and legal professions

No matter the name, this coverage protects you from lawsuits if you make a work mistake, fail to complete a project, miss a deadline, or are accused of professional negligence.

How professional liability insurance protects your business

Businesses that provide professional services typically need professional liability / E&O coverage because those services come with risks. A client could hold your business liable for:

  • breach of contract
  • work oversights or errors
  • providing substandard or incomplete work
  • missed deadlines

If these professional mistakes result in financial losses for a client, they could sue to recoup expenses. Professional liability / E&O insurance helps cover:

  • attorney fees
  • court costs
  • settlements or judgments

Even if there was nothing wrong with the quality of your work, a difficult or dissatisfied client could sue your business over a perceived problem. In that case, you might win the lawsuit but still have to pay attorney fees and court costs out of pocket. Without professional liability / E&O insurance, a lawsuit could present a major financial difficulty for your business.

Learn more at Jones Family Insurance – Serving Punta Gorda and Fort Myers

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *