Professional insurance goes by so many names these days, Errors & Omissions, E&O, Professional Liability. All these are covering you for your professional work and all mean the same thing. So often we have conversations with people that think that they need general liability when in reality they need E & O insurance.
What’s the Difference?
General liability is going to cover bodily injury or property damage. This can also include defense coverage if you’re sued from a covered loss. An example would be if a customer slips and falls in a hotel due to wet floors with no sign. The hotel may be negligent in causing someone bodily injury. If the injured party decides to sue, general liability would provide defense for their client.
Professional is going to apply to those individual that plan, suggest, or build complex projects that your client may not fully understand. Specifically, it’s super important for businesses like IT/Technology, consultants, business consultants, medical professionals, and many others. This applies for businesses for whom incorrect advice or failure to perform professional services could lead to a lawsuit. Even if you’ve done everything by the book, you can be sued in today’s world. The professional liability policy could still respond and save you from enormous legal bills.
How much does it cost?
As with most insurance, there is no one size fits all. While professional liability insurance can come in many shapes and sizes, the cost can vary wildly. Several factors determine the cost including the size of the business, the occupation and activities you participate in, and the amount of coverage you need. Minimum premium can be as little a few hundred dollars all the way up to the millions for huge companies.
Can this be added to my current policy?
Sometimes, yes. Often depending on the type of business or company that you’re with errors and omissions coverage can be bundled with your general liability. This is also going to vary wildly as some companies won’t do certain classes of business. For example, your general liability company may be able to write professional liability for salon stylist but couldn’t do it doctors or nurses.
How much do I need?
Limits can start at as little as $50,000 ranging up to the millions. Typically, we see an occurrence amount of $1,000,000 with the aggregate being $1,000,000 or $2,000,000. Coverage may depend on your level of comfort or requirements that you may need to me.