The list of individuals that can be defined as “professionals” grows longer every day, but the one thing your clients have in common as professionals is that they all could fall prey to a claim of negligence or other wrongdoing that causes their client some financial loss or hardship. They could even create an exposure to liability claims engaging in activities revolving around the normal course of business.
In today’s existing litigious environment, they could all benefit from procuring liability insurance for miscellaneous professionals in order to better deal with a displeased client who feels they have in some way been “damaged” by the performance, or non-performance, of your clients’ professional services. Failing to prepare for instances in which they may have to defend against a lawsuit could have dire consequences.
An Errors and Omissions (E&O) policy can benefit people in all walks of life
Some of the more well known professionals who should carry E&O, or some form of miscellaneous professional liability (MPL) insurance, are doctors, lawyers, accountants, architects, engineers, and the like. However, others such as advertising agencies, wedding planners, tax consultants and fitness instructors, to name just a few, can also benefit from such policies.
For example, consider the tax preparer who fails to file tax documents on time, makes an error in calculations, or allows deductions on items not covered on their clients tax forms, any of these instances could result in a claim. If a freight shipper sends a time sensitive shipment of goods to the wrong city, state, or Country and their client loses sales and money, who will be responsible to covers the loss? These constitute just two examples of why having an MPL policy could greatly save a professional from a disastrous financial burden.
Commonly, many professionals are named in suits for breach of contract or negligence in the performance of services. Negligence suits, which are more frequently instigated, arise from damages sustained due to the professional’s failure to perform according to known standards of conduct in his or her field. There must generally be found that there is a close relationship between the negligent acts and the damage that they cause. Because the financial consequences of such suits can be severe, it’s critical that your insureds recognize their exposures and purchase liability insurance for miscellaneous professionals, in advance, in order to deal with these concerns.