What Is Professional Liability Insurance |E&O Insurance?

Professional liability insurance is a type of insurance that provides coverage for businesses and individuals in the event of lawsuits or claims made against them for professional errors, negligence, or mistakes. This type of insurance is also known as errors and omissions insurance (E&O) or malpractice insurance. Here are some examples of why a business or individual may need professional liability insurance:

• Professional errors or negligence: If a business or individual makes a mistake or is negligent while providing professional services, they may be liable for damages caused to a client. Professional liability insurance can help cover the cost of legal fees, settlements, and other associated costs.
• Breach of contract claims: If a business or individual fails to fulfill their contractual obligations, they may be liable for damages caused to a client. Professional liability insurance can help cover the cost of legal fees and settlements in these cases.
• Professional misconduct claims: If a business or individual is accused of professional misconduct, such as fraud or embezzlement, professional liability insurance can help cover the cost of legal fees and other associated costs.
• Legal defense costs: Even if a claim or lawsuit is baseless, legal defense costs can be significant. Professional liability insurance can help cover the cost of legal fees associated with defending against a claim or lawsuit.

Here are some examples of professionals who may need malpractice insurance:

• Doctors and healthcare professionals
• Lawyers
• Accountants
• Architects and engineers
• Consultants

Overall, professional liability insurance is important for businesses and individuals who provide professional services to protect themselves from unexpected losses and legal claims. Without this insurance, a business or individual may be at risk of significant financial losses due to lawsuits and other claims related to their professional services. Armour’s brokers can help you find the best coverage at the best price.