Protect Yourself From the Unique Risks Experts Face
When you make a living off your expertise, you need comprehensive, cost-effective insurance to protect you financially from damages or legal costs that may arise. Professional liability (E&O) insurance, also known as errors and omissions or professional indemnity insurance, provides the coverage you need. And when you get it from biBERK, you’ll save up to 20% over other providers.
What Does Professional Liability (E&O) Insurance Cover?
Professional liability (E&O) insurance from biBERK helps protect your business if you made a mistake (error) or failed to perform a service (omission). Professional indemnity insurance, another name for professional liability (E&O) insurance, also covers the related defense costs, even from groundless claims. Claims can include the following scenarios:
Unfulfilled Promises
Negligence
Errors
In each instance, professional liability (E&O) insurance covers the costs for legal defense and damages. Plus, biBERK provides an attorney to represent you. biBERK also covers client damages – including punitive damages, if permitted by law in your state. Punitive damages can be quite high, as they are assessed by courts on top of other damages. This is an effort to punish those allegedly at fault even further. If your state allows these damages to be covered by an insurance policy, biBERK covers up to the policy limit.
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We're part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020.
Who Should Consider Professional Liability (E&O) Insurance?
If you provide what could be classified as a professional service, if you typically give advice to clients, or if you’re obligated by a contractual agreement, you should consider carrying professional liability (E&O) insurance.
- Accountants
- Advertising consultants
- Answering services
- Architects and engineers
- Audio/visual consultants
- Barbers and beauticians
- Billing services
- Bookkeepers
- Business management consultants
- Certified financial analysts
- Claim administrators
- Communications/media/public relations consultants
- Compensation and benefits consultants
- Corporate trainers
- Dog groomers
- Educational consultants
- Executive coaching consultants
- Funeral directors
- Graphic designers
- Home inspectors
- Image consultants
- Insurance agents
- Interior designers/decorators
- IT consultants
- Journalists/broadcasters
- Landscape architects
- Loss control inspectors
- Market research consultants
- Notaries
- Optical and hearing aid professionals
- Personal trainers
- Photographers
- Printers
- Procurement consultants
- Project management consultants
- Real estate agents and brokers
- Recruiting consultants
- Sales and marketing consultants
- Security guards
- Social workers
- Software companies
- Strategic planning consultants
- Training and development consultants
- Travel agents
- Tutors
- Veterinarians
Professional Liability (E&O) Offers Protection Beyond Claims
Depending on the coverage you choose, errors and omissions insurance can protect against more than just claims related to errors, omissions, or negligence. Other protections can include:
If your policy has an agreed-upon retroactive date or full prior-acts coverage, biBERK may still help cover the costs associated with claims that are filed after coverage begins – even if the error, promise, or negligent act happened before coverage was effective. For example, let’s say your professional liability policy began on June 30, with a retroactive date of January 1. On July 15, a former client claims you made a mistake on their taxes in March, which you were unaware of when you purchased the policy. Since the occurrence causing the claim took place during the retroactive coverage period (between January 1 and June 29) and the claim is made during your regular coverage period, you’ll likely be covered. With full prior-acts coverage, you’ll have coverage for all services provided before the policy period. If you haven't bought a policy before, claims will only be covered if the error, promise, or negligent act happens during the policy period.
For added peace of mind, biBERK’s professional liability insurance may cover the costs of litigation, depending on the terms and conditions of your policy. This includes claims related to negligent acts and errors or omissions, even if the accusation turns out to be groundless.
We offer an add-on to our professional liability insurance called cyber liability insurance. This covers data breaches and cyberattacks that result in the loss, theft, or accidental release of a client’s personal information. It also provides coverage for regulatory action defense if a government agency requires you to appear in court.
What’s not Covered by Errors and Omissions Insurance?
Professional liability (E&O) insurance is fairly comprehensive. However, there are a few things that aren’t covered with your policy. For starters, biBERK and other typical E&O policies don’t cover warranty or product guarantees your company makes. We also don’t provide coverage when a client is simply unhappy with the work you did. For coverage to apply, the claim must be the result of an error or omission. There are a few other exclusions including:
Illegal Acts or Costs of Defense for Criminal Prosecution
We’re here to protect you from financial risks resulting from honest mistakes. Breaking the law is outside of the scope of coverage.
Regular Accidents That Aren’t Related to Your Expertise
Trips, falls, and other incidents can occur at any business and in any industry. They’re covered by a general liability policy rather than E&O insurance.
Employee Injuries and Related Costs
To pay for your employees’ health care bills and lost wages in the event of a work injury, you’ll need a workers’ compensation policy.
Damages to Your Business Property
A policy that offers property coverage, such as our business owner’s policy, is designed to protect your company’s assets, such as computers, tools, or other necessities.
What Does Professional Liability (E&O) Insurance Cost?
Typically, biBERK’s professional liability (E&O) insurance policies start around $300 and can go up into the thousands. This cost is based on a number of factors, such as your specific industry, the level of coverage you choose, your years in business, number of employees, revenue, and the policy limits you need. Professional liability insurance is an affordable way to further protect your business, but there are still ways you can further reduce the cost:
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