Professional liability insurance, commonly referred to as errors and omissions insurance, is a coverage that protects businesses and professionals if a client gets harmed due to a service or advice given to them by that business. Professional liability insurance cost can vary depending on the exact policy and who the policy is through. Sometimes this policy alone is not enough to protect a business. There are a few other programs that are associated with professional liability:
- Commercial Crime Liability: This protects your business from loss in the case of an employee stealing, forgery, computer fraud, kidnap or other type of commercial crime.
- Directors and Officers Liability: This coverage protects businesses and the directors and officers of that business from allegations that they failed to perform their duties. It can cover legal costs regarding that type of situation.
- Employment Practices Liability: This policy is in place incase an employee accuses you or your business of wrongful termination, sexual harassment, discrimination, breach of contract or makes some other legal accusation.
- Fiduciary Liability: This insurance protects you from allegations that you or your business mishandled an employee’s benefits such as 401(k), medical benefits or some other benefit plan.
- Privacy and Network Security Liability: If personal information of clients or employees is leaked, this type of coverage takes away your risk of being sued and losing money due to legal activities.
There are many different types of insurance that can help buff up your professional liability coverage. Because professional liability insurance cost can vary, you may want to talk to an insurance agent today to see if you can or should add any more coverage for your business.