At Oegema Nicholson and Associates, we understand that protecting the integrity of your work is important. That’s why our brokerage offers a variety of insurance products designed for your business and its activities. Professional liability insurance is crucial, especially if you work directly with customers to provide a specific service.
Whether you own a dental practice or accounting firm, depend on Oegema Nicholson to cover your bases should a client hold you responsible for errors in your work.
What is professional liability insurance?
Also known as errors and omissions (E&O) insurance, this type of coverage protects your company against claims that a professional service you provided caused your client to suffer harm. If this client suffers a loss because they believe your service failed to meet expectations, you could face a very costly lawsuit. They would have to allege this harm was caused by mistakes on your part (errors) or because you failed to provide some sort of service (omissions). Professional liability insurance can cover your legal expenses should your client decide to sue.
This type of coverage is generally reserved for businesses that provide some sort of professional service or advice, such as:
- Insurance brokers
- IT consultants
- Dental offices
- Legal firms
- Accounting practices
- Graphic design firms
- Investment advisers
How does E&O insurance work?
The benefits of E&O insurance can vary widely, depending on your policy and its provider. Oegema Nicholson can help you understand your coverage, so there are no surprises should you have to file a claim in the future.
Although benefits may differ from policy to policy, professional liability insurance typically works in the same way across a number of scenarios. For example, a client may sue their financial adviser after an investment goes awry — even if all parties were well-aware of the risks beforehand. Although a court may rule in favour of the adviser, the legal fees to defend the case are likely very costly. This is when E&O insurance would come into play. Aside from legal costs, the policy may also cover other related expenses, such as hiring temporary employees or any lost income during the legal battle.
Professional liability insurance does not usually cover criminal prosecution cases or liabilities not listed in the policy.
What are some common claims?
Although policies may vary depending on the unique needs of your industry, here are some common claims filed under E&O insurance:
- Misrepresentation – Presenting information that a client feels is faulty, dishonest or misleading
- Negligence – Making an error while providing a professional service
- Libel/Slander – Damaging the reputation of the client
- Loss of documents – Losing or accidentally destroying important paperwork
It’s important to remember that you don’t need to be found guilty for E&O insurance to kick in. Your business may file a claim, even if a client has only accused you of wrongdoing. That’s because a simple accusation could be enough for legal proceedings to begin against you.
How much does professional liability insurance cost?
Oegema Nicholson can connect your business with some of the best insurance rates on the market. The cost for professional liability insurance will depend on a number of factors:
- Type of business
- Location of business
- Whether any previous claims have been paid out in the past
Should you work in an industry where it’s common for clients to sue for errors and omissions, chances are you may pay a higher premium for professional liability insurance. One way to ensure you’re not overpaying is to work with a trusted insurance broker — who can determine the right amount of coverage for your needs.
Why trust Oegema Nicholson?
Whether you’re a casual freelancer or the head of a prestigious company, Oegema Nicholson can help you protect the integrity of your work. Rely on us for high-quality insurance products, especially when it comes to E&O insurance. Our brokerage understands the complexities involved in providing a professional service. Should a client challenge the quality of your work, have peace of mind knowing your legal expenses may be covered. A strong insurance policy can ensure you’re not paying out of pocket, allowing you to focus on more important areas of your practice. Rely on our team of knowledgeable insurance experts to deliver the coverage you need — at a price you can afford.
For more information on professional liability insurance, call us at 613-224-1455 or contact us here.