5 Reasons Professionals Need Professional Liability Coverage
Professionals might not think they are at risk of being sued, but just one error or omission -- or one unhappy customer -- can lead to a professional liability lawsuit. In today's increasingly litigious environment, lawsuits have become more and more costly. A professional liability claim can be expensive, time-consuming, and damaging to a professional's reputation and bottom line.
Professional liability insurance, also known as Errors & Omissions (E&O) coverage, can help professionals such as real estate agents, accountants, lawyers, design professionals and consultants protect themselves against losses resulting from negligence, errors and omissions in the performance of their professional services.
Here are five reasons why a professional should consider this important coverage:
- Their clients expect it. Many customers require the professionals they hire to carry E&O insurance: without coverage there may be a risk of losing the opportunity for a new project.
- They can't rely solely on contracts for protection. Contracts only go so far in protecting professionals from potential lawsuits, as contract provisions are routinely challenged in court and at a considerable expense.
- Customers often file lawsuits if they are unsatisfied. If a professional's services fail to meet expectations, customers don't hesitate to take legal action.
- Even if the case is frivolous, the damage might not be. Defense costs and lost work time can be costly.
- It's a sound investment. A quality professional liability insurance program can be cost-effective and help protect a professional's business and financial security.
Travelers Professional Liability coverage offers protection to professionals for an array of emerging exposures they face and can help protect them against losses resulting from negligence, errors and omissions in the performance of professional services. Travelers Professional Liability coverage can be tailored to fit a professional's specific business needs. In addition to this coverage, Travelers offers its Professional Liability insureds access to a variety of risk management tools and resources that can assist professionals in proactively mitigating their liability exposure. These resources include access to a library of risk management resources, including advisory bulletins, claim studies, webinars, newsletters, sample engagement letters and contract guides.
For some of the unseen risks that professionals might face and how coverage can help them prepare, view the “Uncover Professional Liability Risks” video.