All professionals need the protection of error omission insurance whether they have their own practices or work under a larger company. Just as one needs to protect his or her physical assets, he or she also has to protect the professional reputation of his or her business. In some states, many professionals are required by state law to carry professional liability insurance. One has to find out if his or her profession falls under any state or local regulations to determine how much insurance coverage he or she is required to carry.
Professional liability insurance helps take care of the defense legal fees and any damages that may be awarded when someone claims negligence from the service provider. This negligence can stem either from the service provided or from the lack of service. Many times, these claims can be baseless. However, there are instances in which a mistake is actually made. In any case, the insurance will keep a professional from having to pay legal fees out of pocket, which by themselves can amount to thousands of dollars.
There are many factors that go into determining how much error omission insurance coverage one will need. For instance, some businesses only operate locally, so their policies will only need to cover business conducted within the local area. However, these days, more people are doing business on a national and international level. When services are this far reaching, one will need to make sure he or she has a policy that covers work in any location. This is especially important for those using contract workers or employees in areas in which one is not physically present.
A professional may have an easier time getting a good deal on a policy if he or she commits to one before any claim has been made. These policies typically do not cover claims that are filed before the policy is bought. They also do not cover fraudulent activity or punitive damages. Professional liability insurance policies also cover aspects of business beyond those of general liability and commercial property insurance policies. All together, these policies can provide most of the full protection a professional needs to cover his or her business.
No professional should be without error omission insurance. Choosing the right amount of coverage can be challenging, but there are many ways one can find just the right policy. Many online outlets offer quotes for insurance, but one may also look to insurance agents or brokers to help sort through the many options he or she has for insurance policies. One needs to make sure his or her professional reputation stays intact to avoid any future loss of clients or income resulting from a lawsuit.
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