Do I need Professional Liability Insurance?
Professional Liability Insurance, also known as Errors and Omissions Insurance, is a type of insurance that protects businesses and individuals who provide professional services. It covers claims arising from errors, omissions, or negligent acts made in the course of providing professional services.
For example, Tracy is an event planner in Ontario who recently needed her professional liability insurance when a mistake in advertising for an event resulted in a lawsuit. Fortunately, Tracy had purchased a professional liability policy when she started her business, which protected her from the costs of the lawsuit and gave her peace of mind.
In Tracy’s case, her professional liability policy covered the costs of reprinting and resending the flyers, as well as the legal fees associated with the lawsuit. Without this type of insurance, Tracy could have been financially responsible for the losses incurred by the trade association, which could have been a significant financial burden.
Professional Liability Insurance is important for many different professionals, including accountants, lawyers, architects, engineers, and event planners like Tracy. It can protect them against claims arising from errors or omissions in their work, and help cover the costs of legal fees and settlements. In some cases, it can even help protect the professional’s reputation.