Errors and omissions insurance, often known as professional liability insurance, is critical coverage for businesses that give professional advice and services and need to be protected from lawsuits alleging mistakes, omissions, or negligence in their work. Your professional liability insurance needs will vary depending on your business and the types of risks you face, but there are a few key characteristics you should look for in a provider. A variety of criteria influence the level of coverage you’ll receive, from financial stability to dependable customer service.
What Is Professional Liability Insurance?
Professional liability insurance (PLI) covers professionals such as accountants, lawyers, and physicians from claims brought by their clients for negligence or other reasons. Because general liability insurance policies do not cover claims stemming from business or professional practices such as carelessness, malpractice, or misrepresentation, professionals who have expertise in a certain area require this form of insurance.
How Professional Liability Insurance Works
Professional liability insurance is known by several names depending on the profession, such as medical malpractice insurance for doctors and errors & omissions insurance for real estate agents. PLI is a unique type of coverage that is not available through homeowners’ endorsements, in-home business policies, or company owners’ policies. Only claims made within the insurance period are covered.
PLI policies are typically written on a claims-made basis, meaning that coverage is only valid for claims filed within the policy period. Typical professional liability insurance will indemnify the insured against loss resulting from any claim or claims made during the policy period as a result of any covered error, omission, or negligent act performed during the policy period in the course of the insured’s professional business. Although some policies may include a retroactive date, incidents that occurred before the coverage was activated may not be covered.
Best Professional Liability Insurance
Professional liability insurance is an excellent option if you own a business and work with clients. If a client or customer sues your business for carelessness or malpractice, professional liability insurance, also known as errors and omissions (E&O) insurance, compensates for your legal defense. If you don’t have PLI, your company will be financially responsible whether you win or lose a lawsuit.
Professional liability insurance is one of the most important types of business insurance. But not all insurance companies are made equal. We started with a list of 17 carriers and carefully analyzed each one based on policy options, simplicity of use, industry specialty, pricing, and customer happiness to determine the best PLI companies.
#1. AIG
With a variety of policy options for every industry, specialty coverages, and it’s signature ReputationGuard program, AIG is the best overall PLI, provider.
AIG is the top overall professional liability insurance provider, according to our analysis. Aerospace, healthcare, hospitality, construction, transportation, education, and many other industries are served by the company. You can pick from a wide range of coverage options, including specialty alternatives that you won’t find anywhere else. An AIG professional liability policy will protect you no matter what happens.
You can acquire insurance via AIG that is tailored to the types of errors that are most common in your sector. With coverage options for robotics professionals, business leaders, and publishers, to name a few.
Another advantage is its ReputationGuard coverage, which covers services. Such as crisis communications, media training, rapid response, and social media management if your company issued. As part of the ReputationGuard service, you can also purchase income loss protection.
Despite the fact that AIG provides a wide range of business insurance products. It does not provide the most fundamental one general liability insurance. Accident and health insurance, cyber liability insurance, environmental insurance, mergers, and acquisitions insurance, and surety bonds are just a few of the products offered.
You’ll need to contact an agent to get a quote for AIG professional liability insurance. AIG processes claims by phone and email, and you can find the correct contact for your industry and policy type by consulting the claim reporting guide.
#2. Pogo
Pogo’s insurance marketplace is designed specifically for freelancers and sole proprietors, and it can help you find reliable coverage at an affordable price.
Pogo is a very young insurance company that functions primarily as an internet insurance marketplace. Because the company specialized in coverage for independent contractors and knows the unique dangers that self-employed individuals confront. It’s our top recommendation for freelancers.
Pogo will match you with multiple insurance providers that fit your coverage needs depending on the sort of business you own, the size of your business, your income, and the structure of your organization when you fill out the online application. An agent can also advise you on how much coverage you need to safeguard your professional liability.
Along with professional liability insurance, freelancers can purchase general liability insurance, a business owner’s policy, workers’ compensation insurance, cyber liability insurance, business property insurance, business auto insurance, and inland marine coverage through Pogo.
If you operate as a freelancer, Pogo is a good option for professional liability insurance. But there are a few drawbacks to consider. To begin with, the firm does not specify which insurance providers it works with. To see your matches, you’ll need to get a quotation. After you submit the form, you must wait for a Pogo representative to contact you with your results.
#3. The Doctor’s Company
Healthcare providers are subject to costly malpractice and negligence lawsuits. But a professional liability policy from The Doctor’s Company offers valuable protection.
Our top pick for professional liability insurance for healthcare workers is The Doctor’s Firm, which is the largest medical malpractice insurance company in the country. Doctors, nurses, dentists, surgeons, and entire healthcare systems are served by the company, which sells coverage to 80,000 people across the country.
The Doctor’s Company’s E&O insurance policies contain a variety of coverages that are not included in a normal malpractice insurance policy. The corporation, on the other hand, does not provide much information about what its insurance actually covers on its website.
Medical malpractice insurance, MediGuard coverage for Medicare/Medicaid claims, CyberGuard coverage for patient data theft, management liability insurance, health and disability insurance, employment practices liability insurance, property and general liability insurance, and workers’ compensation insurance are all available options in addition to E&O insurance.
The Doctor’s Company’s rewards program, The Tribute Plan, is one of its distinguishing aspects. The Tribute Plan rewards healthcare staff for being loyal customers and providing services to patients. Is available to all policyholders.
One disadvantage of The Doctor’s Company is that you must interact directly with an agent to obtain a quote or purchase coverage. You can get a quote via an online form. But you’ll have to wait for a representative to contact you before proceeding with the purchase.
#4. Embroker
Embroker’s professional liability policies are designed with lawyers in mind, so you can protect yourself from getting tied up in a lawsuit that might pull you away from billable work.
Embroker’s professional liability insurance for lawyers is the best on the market. If a client sues you for negligence, malpractice, misrepresentation, oversight errors, and other reasons, attorney professional liability insurance covers your legal defense.
Embroker’s marketplace concept is appealing to us because it allows you to browse coverage and customize a policy to match your individual needs. You can also choose a deductible that fits your budget and create personalized coverage limits. The best part is that you can apply online and receive coverage in as little as ten minutes. A waiting time is not required for most types of coverage.
Embroker sells a variety of business coverages in addition to professional liability insurance. Such as business owner’s policies, commercial crime insurance, cyber liability and data breach insurance, key person insurance, fiduciary liability insurance, surety bonds, and workers’ compensation.
The coverage is also affordable, which is why Embroker is the ideal professional liability supplier for lawyers. Embroker is digital insurance, allowing it to maintain low pricing. If you have any queries about your coverage. You may contact Embroker through phone, email, or live chat at any time.
Embroker, the country’s first digital business insurance company, was created in 2015. In the year 2020, the firm began selling professional liability insurance to lawyers.
#5. Thimble Insurance
Thimble Insurance offers affordable and flexible professional liability insurance, which is ideal for small businesses that have changing coverage needs.
For small business professional liability insurance, Thimble Insurance is the finest option. The coverage is reasonable, and you can pay as often as you like. The application process is very quick and simple. You may easily alter your coverage as your company grows through the online customer portal.
Thimble offers professional liability insurance for a variety of vocations. Including pet sitters, freelancers, event planners, beauty experts, janitors, fitness professionals, and more.
Thimble’s versatility in terms of policy terms and payment alternatives is one of its strongest advantages. You can acquire annual coverage or insurance for specific projects that last a few days or weeks. Ensuring that you don’t overpay for coverage you don’t require.
Thimble’s professional liability insurance coverage starts at just $36 per month, and you may pay your payment monthly rather than in one single sum.
General liability insurance, equipment insurance, business owner’s policies, workers’ compensation insurance, malpractice insurance, and even hard-to-find products like drone insurance and event insurance are all available through Thimble.
The fact that Thimble does not back online claims is one of the company’s main annoyances. You must contact an agent if you need to file a claim. In addition, Washington, New York, Colorado, Illinois, and Massachusetts are not by the company.
#6. Hiscox
Real estate agents and brokers can get reliable professional liability insurance through Hiscox, which provides tailored coverage and worldwide protection.
For real estate agents, property managers, and brokers in need of professional liability insurance to protect themselves from litigation from buyers and sellers, we propose Hiscox. You can qualify for coverage. Via Hiscox whether you manage a small real estate agency with several agents or sell houses on your own as a side venture.
Hiscox’s professional liability insurance coverage includes a variety of payment methods. You have the option of paying your annual payment in one lump sum or in monthly installments, with no additional expenses.
The coverage is to the risks that realtors face, and in the event that you need to file a claim. Hiscox will appoint a dedicated claims agent to represent you. Furthermore, your coverage is valid everywhere in the world. Which is great for real estate professionals who sell properties in different countries.
Business owner’s policies, general liability insurance, cyber security insurance, workers’ compensation, commercial auto insurance, umbrella insurance, directors and officers insurance, and employment practices liability insurance are among the other business insurance policies available through Hiscox.
Hiscox is one of the country’s oldest commercial insurance companies. It opened its doors in 1905 and now serves over 400,000 consumers. Hiscox generally services small businesses. although it also offers coverage to businesses of all sizes and across a wide range of industries.
What is the Benefit of a Professional Insurance Market?
Protect Your Operation from Financial Losses Caused by Lawsuits If you have professional indemnity insurance, the insurer will pay for all of your legal defense costs in the event that you are sued. This will prevent any interruptions to your business. Errors and omissions insurance will pay for defense costs such as attorney fees, the expense of going to court, and the cost of filing legal documents, among other things.
Is Professional Liability Expensive?
For professional liability insurance, the annual premiums for many different types of small enterprises typically range from 350 dollars to 1,800 dollars. That comes up to a monthly cost of between $29 and $150. A significant number of our policyholders pay somewhere in the neighborhood $400 annually for professional liability coverage.
Who Needs Professional Liability Insurance?
If your company delivers services to its customers, getting professional liability insurance is a smart move that should not be overlooked. Purchasing a policy is mandatory if the conditions of your contract with your customers stipulate that you must maintain this level of coverage at all times. It is possible for businesses of any size operating in any sector to benefit from purchasing professional liability insurance. Even the tiniest organizations run the risk of becoming embroiled in professional liability litigation, which can have a minimum settlement requirement of several thousand dollars.
What Is the Difference Between General Liability Insurance and Professional Liability Insurance?
Two of the most prevalent types of insurance policies purchased by commercial enterprises are general liability insurance and professional liability insurance. Claims that involve bodily injury and property damage are covered by general liability insurance, as are lawsuits that involve advertising injuries such as slander, as well as medical bills. The only kind of claims that are covered by professional liability insurance are those linked to business errors and carelessness.
How Does Professional Liability Insurance Protect Different Professionals?
#1 Accountants and auditors
Accountants’ and auditors’ professional liability insurance covers the costs of lawsuits resulting from accounting errors, data entry problems, miscalculations, or lost documentation. Because the policy provides the client with indirect financial protection. Some clients will demand confirmation of insurance before agreeing to deal with your firm.
#2. Architects
Architects are by professional liability insurance in the event that a building design fails to fulfill project standards, is late, or contains errors. A clause requiring professional liability insurance coverage could be in a client contract.
#3. Consultants
For consultants, professional liability insurance provides cash compensation in the event of a lawsuit alleging poor advice or erroneous estimates. Before agreeing to work with you, certain clients may need confirmation of professional liability insurance.
#4. Engineers
Engineers’ professional liability insurance protects them financially from litigation arising from issues like cost overruns, delivery delays, and difficulties with construction supplies. For some projects, you may be required to show proof of professional liability insurance to a client, partner, or licensing board.
Is it Good to Have Professional Liability Insurance?
Consider purchasing professional liability insurance if your company is in the business of selling its skills. This coverage, which protects your firm and your bottom line from client claims of late, unfinished, or poor work, is also known as errors and omissions insurance, or E&O insurance. Allegations like these can result in expensive lawsuits being filed.
What is Covered by Professional Liability Insurance?
If you make a mistake in the professional services that you provide to a customer or client, having professional liability can assist cover you and your organization financially. This type of insurance protection is often known as mistakes and omissions insurance (E&O). It does not matter how knowledgeable you are in your field; occasionally you will make a mistake.
Is Professional Liability the Same as Workers Comp?
Claims made by your employees for injuries experienced while on the job are not covered by your general liability insurance or your professional liability insurance. Workers who sustain injuries on the job or get ill as a result of a work-related accident or disease are eligible for benefits under their employer’s workers’ compensation insurance policy.
What is Harder to Prove Professional Liability or Professional Negligence?
To successfully defend or prosecute a claim of professional responsibility, it is essential to have a solid understanding of how the insurance coverage for such a claim differs from that of a general negligence claim. Claims related to professional liability are, in a nutshell, typically more difficult to prove.
Conclusion
As you can see, professional liability insurance is offered by a large number of insurance firms. The challenge is finding a firm that recognizes the unique dangers that your profession entails. All of the companies on this list have our support, but AIG is our top pick. AIG delivers dependable insurance to individuals in a variety of industries through its specialty coverages. As reputation management and income loss protection aren’t available from many other companies.
FAQ
Who needs professional liability insurance?
Professionals that operate their own businesses need professional liability insurance in addition to an in-home business or business owners policy. This protects them against financial losses from lawsuits filed against them by their clients.
Where can I get errors and omissions insurance?
Insurance brokers, insurance dealers, registered investment advisers, financial planners, and other financial professionals can obtain E&O insurance. Regulatory bodies, such as the Financial Industry Regulatory Authority (FINRA), or company investors often require E&O insurance.
Is Hiscox reputable?
Financially strong: Hiscox has an “A” Excellent rating by A.M. Best, which is a national credit rating company that focuses on insurance companies. Tailored plans: There is no “one-size-fits-all” plan. Rather, Hiscox tailors small business insurance coverage to each business individual’s needs.
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