From architects and attorneys to financial planners and tech consultants, “professional services” companies are exposed to many risks that simply aren’t covered by commercial general liability (CGL) insurance. That’s because these types of businesses are less likely to experience claims of bodily injury or property damage, but more likely to be accused of omissions, negligence, misrepresentation, violation of good faith and fair dealings, or inaccurate advice. To fill the gap, professional liability insurance becomes an essential type of coverage for protecting your business against damages arising from the rendering of or failure to render professional services.
Who Needs Professional Liability Insurance?
While some industries are legally required to carry professional liability insurance (which goes by various names depending on the industry), most service-oriented professionals opt for coverage simply because it’s a smart business decision.
There’s an incredibly broad range of professionals who benefit from this type of coverage, including (but certainly not limited to):
- Accounting Firms
- Architects & Engineers
- Attorneys
- Consultants
- Financial Services
- General Contractors (including Plumbers, Painters, Electricians, and Janitorial Professionals)
- Home Health Aides
- Insurance Agents
- Medical Practices & Medi Spas
- Nutritionists & Dieticians
- Occupational and Physical Therapists
- Personal Trainers
- Photographers
- Psychologists & Therapists
- Salons
- Social Workers
- Software Developers
- Website Design & Developers
Below, we’ll explore just a few of the industries that are at the greatest risk of facing claims related to errors and omissions, malpractice, negligence, and violations of fiduciary duty.
Architects & Engineers
Did you know your firm could be held liable for the negligence of contractors working on your project? Did you know you could face legal claims due to faulty cost estimates or delays in construction?
There are many circumstances that could cause one of your clients to sue you and/or your firm – even without any obvious failures in your delivery of safe, quality designs. Professional liability insurance (aka professional indemnity insurance) gives you the resources you need to defend against claims in court or arbitration.
Attorneys & Law Firms
What would happen if misfiled paperwork led to a damaging result for one of your clients? What if your network was hacked and confidential information got leaked to a tabloid?
Simply by the nature of your business, lawyers face some of the highest exposures to liability claims, and without proper coverage, your reputation and your financial security could be at risk. Attorney malpractice insurance (aka errors and omissions insurance) provides coverage for defense costs and settlement payments.
Financial Planners, Investment Advisors & Accountants
Have you ever been concerned that a client didn’t fully understand your advice and might take a course of action that wasn’t in their best interest? What if your marketing team launched an advertisement making claims you couldn’t substantiate?
It’s an immense responsibility to help people make decisions about what they should and should not do with their money, especially since there’s often no black and white answers. In this highly regulated industry, it can feel like there are potential pitfalls and hazards around every corner, but professional indemnity insurance protects you and your directors, officers, and employees from those dangerous risks.
For Medical Professionals
What if a patient were injured while undergoing treatment at your facility? What if you missed something in your diagnosis and a patient’s condition worsened as a result?
Whether you’re a doctor, EMT, pharmacist, or any other type of medical professional, your work puts you at significant risk for a malpractice claim. From HIPAA violations to alleged negligence, medical malpractice insurance is essential for the continued success of your practice.
For Technology Consultants & Developers
Did you know that you could be held liable if the installation of your new SaaS product damages a client’s legacy computer system? What would happen if you failed to meet the contractual deadline on a development project, and the client’s business operations were impacted?
Sometimes things don’t go as planned when technology is involved – even despite your best efforts. Professional liability insurance can protect you from any claims of errors, omissions, mistakes, or negligence related to your tech services or products.
We Can Help You with Your Professional Liability Insurance Needs
At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
Each week, Swarts, Manning & Associates covers relevant topics for your business. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
