What Is Professional Indemnity Insurance?
Professional indemnity insurance protects businesses when employees make mistakes in the professional services they provide to customers or clients. This coverage is also known as errors and omissions (E&O) insurance. Even if you are an expert in your business, mistakes happen. And if your client or customer believes that an error in your professional services has caused a financial loss, they can sue you.
Why Is Professional Indemnity Insurance Important?
If your business offers professional services and you don’t have professional indemnity cover, you could be liable if a customer believes you made a mistake. Even if it didn’t cause them a financial loss, you could still be sued. Small business owners should consider professional liability coverage because it protects businesses when they need it most. You should especially consider this cover if:
Provide professional services
Offer advice to clients
Full coverage is required
What Does Professional Indemnity Insurance Cover?
Professional indemnity insurance for small businesses can help protect against claims:
Professional indemnity insurance for small businesses can help protect against claims:
Negligence
Coloring
Inaccurate advice
Personal injury
Copyright Infringement
Defense costs
Who Needs Professional Indemnity Insurance?
Professional indemnity insurance is important coverage that business owners who provide a service to a client or customer should have. You will want to get professional indemnity insurance if:
You must sign a contract that requires coverage
Offering professional services directly to customers
Advise clients regularly
Be aware that some states require this type of business insurance. Learn more about who needs professional indemnity insurance today.
How Much Does Professional Indemnity Insurance Cost?
Your costs are unique to your business. The amount you pay for professional indemnity insurance will vary depending on the product, the limits chosen and the risk class or hazard group of your business.
Product Average Minimum Monthly Premium***1
Miscellaneous Separate Professional Liability Coverage $76
Miscellaneous Certificate of Professional Responsibility $50
Architects and Engineers Professional Liability $279
Medical Personnel Professional Liability $132
Errors and Omissions Insurance for Tech Companies $164
*** Quotes will vary by business depending on the size of your business, the state your business is located in, coverage limits chosen and the risk class your business is associated with.
Factors that can affect your price of professional indemnity insurance include:
Policy details such as coverage limits
Type of Business
Location
Company size, number of employees and clients
Years in business
Claim history
You can work with our specialists to get the right amount of Errors and Omissions (E&O) insurance for your business. With over 200 years of experience, we can help protect you with professional indemnity insurance for small businesses.
How Does Professional Indemnity Insurance Work?
Many insurance companies write professional indemnity insurance based on retroactive dates and extended reporting periods.
Retroactive date
Extended reporting period
Occurrence.
