In a service economy we have seen a great increase in the different types of individuals suggesting to their clients about their expertise in a certain field. Often when a problem develops clients look to these professionals to determine if an error or omission was made that could have prevented the problem. Professional liability insurance protects the professional from the significant financial loss that can result from a lawsuit. Even without merit litigation is costly, and will effect one’s reputation.

Professional Liability or E&O is insurance designed to protect specific highly trained professionals and their company from financial loss arising out of their negligence. Professional liability insurance is available for a wide range of professions and also known as “malpractice” insurance.

Each profession has its unique exposures presented by its services. For example, the potential for claim and the types of claims are very different for a real estate agency than for a computer softwardesigning firm. And the same holds true for different types of consultants.

Because of this type of insurance is unique for each insured, professional liability policies all different and certain insurance companies only specialize in certain professionals. In many cases, lesser-known insurance companies could provide the broadest coverage at the best price with quality claims handling.

These policies cover the defense costs in defending the allegations and any settlement arising out the lawsuit(s)– these types of claims are very expensive. Professional liability insurance is written on a “claims made” policy.

Professionals of all types are being held to higher standards of conduct than in the past, and lawsuits without merit have grown considerably. Executive Perils is experienced in determining an insured(s) exposure(s) and seek insurance policies to protect your insureds. Talk to your Executive Perils broker for current state of the market environment.