While every business faces liability risks, client-based businesses face the more unique risks of negligence, errors or omissions while performing services. For this reason, real estate agencies, law firms, engineer firms, architecture firms, medical establishments etc. should consider purchasing professional liability insurance, also known as errors and omissions insurance (or malpractice insurance for doctors).
What are professional liability risks? Essentially, it’s anything done by a company that results in customers facing extra charges or costly delays. Here are a few examples:
- Cost overruns are not explained to customers before being charged
- A negligent engineer erects a weak structure that prematurely fails
- A medical recommendation leads to a bad reaction to a drug or treatment
While some of these cases involve a performance error, many of them involve a company that has failed to manage the client’s expectations. Why? Client-based services require a highly trained staff, which clients tend to hold to higher expectations. When these expectations are broken, a lawsuit can arise.
Professional liability insurance helps cover these expenses, from your company’s ongoing risk management costs to legal expenses. Without this valuable coverage, a single professional liability lawsuit could grow to the point of bankrupting your company.
The cost of professional liability insurance is determined by calculating factors such as your company’s projects, documentation processes, claims history and training practices, among others. You may be surprised to find that this coverage doesn’t cost as much as you originally anticipated. But you won’t know until you pick up the phone.
Call your independent agent today to learn more about your coverage options and to request a quote.
Protect the business you worked so hard to build. Call Mitchell & Mitchell Insurance Agency at 888-512-8878 for more information on Los Angeles professional liability insurance.