Professional practices need the same types of insurance as any other business for property, workers compensation and vehicles. Many professionals view professional liability insurance as an even more critical coverage. Professionals are concerned that in today’s litigious society, every mistake, suspected mistake or incident of client or patient dissatisfaction can lead to a lawsuit. Professional Liability Insurance protects them from the potentially ruinous economic consequences of this risk.Professional Liability Insurance (EO insurance) protects your company from claims if your client holds you responsible for errors, or the failure of your work to perform as promised in your contract.
Coverage includes legal defense costs - no matter how baseless the allegations. Professional Liability insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy. It is very important for you to be aware that virtually all professional liability insurance policies are issued on a claims-made basis. That means that coverage is only provided for work that is done during the policy period and for claims that are filed (made) during the policy period. In effect, if an E&O insurance policy is cancelled, and no provision is made for an extended reporting period, then all coverage stops and it is as if you never had a policy.

Finally, every insurance policy contains exclusions. It is important for you to analyze the professional risks that are most threatening to your business and seek insurance that covers those risks. Discuss your concerns with your agent. He or she can help you identify a Professional Liability insurance policy that fits your needs