November 2, 2023

Professional Liability Policies Are Unique

Business man reviews insurance documents on the desk at the office.

Unlike property insurance or even general liability insurance, the policy wording used for one client is not necessarily suitable for all clients.

Whether you buy a PL or E&O policy, it usually will be tailored to the specific needs of your business classification. For instance, a policy for real estate brokers typically includes coverage for failure to advise clients on the existence of fungus, asbestos or bacteria. Policies for accountants might provide coverage for acting as a trustee or administrator of an estate. Some policies also cover inadvertent transmission of computer viruses and corruption of customers’ data. Examples of other professionals who need protection include:

  • Architects and engineers
  • Bookkeepers
  • Certified financial analysts
  • Dog groomers
  • Home inspectors
  • Landscape architects
  • Optical and hearing aid professionals
  • Printers
  • Social workers
  • Software companies

Many insurance companies offer group policies to members of trade associations. In other cases, insurance companies form buying pools that professionals can “join.” Miscellaneous professional liability coverage is also available for a variety of businesses such as translators, meeting planners, publishers, and collection agencies. If you need coverage, we can advise you on the best approach.

Sole proprietors may choose to protect their personal assets by forming a limited liability company, but their corporate assets are still at risk unless they buy E&O coverage.

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