Professional liability insurance is a very important policy for any business owner to consider purchasing. Anyone that operates a business where they provide professional services to their clients, or is giving their professional advice or opinions need to have this coverage in place. If a client agrees to follow your suggestions or advice, and it has unfavorable results, you could then be held liable.
When they experience a financial loss, your client will likely seek retribution in a court of law. An agency that specializes in professional liability coverage, commonly referred to as errors and omissions insurance in NJ can aid you in selecting a policy that addresses your needs. The list of professionals that could benefit by having this product in their insurance portfolio includes doctors, dentists, chiropractors, architects and engineers, and attorneys.
Those working in the financial sector are also often at risk without a policy of this type in place, and includes accountants, bookkeepers, and CPA’s, tax preparers/professionals, financial planners and advisers, insurance and real estate agents, business and technology consultants, as well as marketing and managements consultants.
The benefits to having professional liability insurance
E&O coverage focuses on any alleged failure to perform a service sold by the policyholder.
For example, you may find yourself entering into a contract where your client is requiring you to have professional coverage, so you’ll want to make sure that you have coverage that is correct for the type of work you’re doing or services you’re providing. Some companies even offer special packages tailored just for these types of businesses.
It can also protect against financial loss caused by your product or service, or even, as it states, an error or omission. Most policies include personal injury coverage, coverage for defense costs, and even full severability for partners deemed innocent of any wrongdoing.
As demonstrated, there are many different types of businesses that should consider professional liability insurance as something they simply cannot afford to be without. The cost of doing business without errors and omissions insurance in NJ, as any agency will tell you, is simply too big a risk to take.