If you operate a business in Dallas, TX, and are an expert in your field, regular business liability insurance may not be enough to protect your interests. Professionals in certain industries who offer advice should consider professional liability insurance. The agents at Presley Insurance Group can help you understand how this type of policy can safeguard your business.
Understanding Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects professionals from legal claims made by clients involving errors, omissions, or negligence in their services. This insurance covers the costs of legal defense, judgments, and settlements when a client sues, even if the lawsuit isn’t proven. These costs can quickly add up and potentially force you out of business if you don’t have adequate protection. Unsatisfied clients can sue for any reason, regardless of the size of your business.
There are two types of professional liability policies. The most common is the claims-made policy, which triggers coverage while the policy is active, regardless of when the event occurred. Occurrence policies, on the other hand, provide coverage for events that happen during the policy period, even if the lawsuit is filed after the policy has expired.
How Professional Liability Differs from General Liability
General liability insurance covers issues like physical injuries or property damage, while professional liability insurance covers claims related to errors, omissions, and negligence in your advice or services. A professional liability policy activates immediately when a claim is filed. Like other insurance policies, you’ll need to pay a deductible first, but afterward, the E&O policy will cover claims and legal fees up to your policy limits. A high-limit policy can potentially save your company from significant financial losses.
Get started on professional liability coverage by contacting Presley Insurance Group. Our experienced professionals, serving residents and businesses in Dallas, TX, and neighboring communities, are here to help you find the right coverage for your needs.
