There is a wide range of professional service providers in all lines of work that have a common concern when it comes to being sued. If, for whatever reason a client or customer is not happy with the results of the services being rendered they may opt to take the matter before a court of law and this can be a very costly consequence. Insurance is available for this particular exposure, in the form of professional liability insurance for miscellaneous markets.
A misc professionals program provides practical solutions to everyone from agents and brokers, and claims adjusters and bookkeepers, along with forestry managers, freight forwarders, and consultants for these businesses and many others. The list of companies and advisors covers a wide range, but the important thing to remember is, if you give advice, suggestions, or recommendations that could ultimately affect a client’s bottom line, you need insurance to protect you in the event that they file a lawsuit claiming that your services resulted in a loss of income, or business, or both.
Common issues covered by Miscellaneous Professional Liability (MPL) coverage
More and more, because we live in such a litigious environment, clients are requiring the professionals they hire to carry some form of errors and omissions (E&O) insurance. Which makes perfect sense, because if you’re uninsured then you may risk losing the opportunity for a new project for that exact reason. As the number of legal issues continues to rise, most clients won’t hesitate to take legal action if they feel the professional services performed were below any preconceived expectations they may have had.
As for defense costs, and this will occur in even the most frivolous cases, they can be quite costly, not only in dollars, but in lost time from work. Plus, the damage to a business’s reputation often cannot be measured.
While contracts can offer some protection, they only go so far in protecting professionals from potential lawsuits. This is due to the fact that contract provisions can be challenged in court and this can also come at a considerable expense. A misc professionals program can be both cost effective, and may also ensure that clients will be comfortable working with the professional firm that they’ve chosen.