If you’re a broker, lawyer, accountant, financial advisor, or anyone providing professional advice or services, you need Professional Liability insurance in California to protect you from the costs associated with negligence claims. This policy is also sometimes reffered to as Errors & Omissions or Malpractice Insurance.
Professional Liability insurance essentially protects you in the instance where a client might claim that he or she experienced financial loss due to an error or omission made by you the professional.
Professional Liability Insurance Coverages
Professional Liability Insurance provides coverage for various unwanted outcomes that can arise as a result of your business providing professional advice or services to clients. If a client decides that your advice, products or services have proven less than satisfactory, they can file a claim against your business, seeking to recover their costs and other losses.
It is important 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 claims that are made during the policy period. In other words, coverage stops when you cancel the policy and any claims made before the policy was purchased won’t be covered.
Professional Liability generally covers:
- Defense costs
- Settlements
- Judgments
- And more…
There are several types of Professional Liability protections you can choose depending on the type of coverage you need such as:
| Type of Coverage |
Description |
Example |
| Architect & Engineer Liability |
Protection for architecture and engineering firms against any claims of negligence, omission or error on behalf of the business. |
If an engineer makes a mistake which costs a client money, the firm will be protected against the costs associated with that loss. |
| Data Compromise Liability |
Protection for businesses which hold sensitive data against any claims of negligence, omission or error in security. |
If a business offering secure storage for data has data compromised, they will be protected against financial risk and other liabilities. |
| Banking & Broker Liability |
Protection for banking institutions and brokers against any claims of negligence, omission or error on behalf of the business. |
If an banker makes a mistake which costs a client money, the institution will be protected against the costs associated with that loss. |
| Technology Liability |
Protection for those working in the technology industry against any claims of negligence, omission or error on behalf of the business. |
If a web developer makes a mistake which costs a client money, the agency will be protected against the costs associated with that loss. |
| Media & Communications Liability |
Protection for those working in the media and communications industry against any claims of negligence, omission or error on behalf of the business. |
If a social media coordinator makes a mistake which costs a client money, the agency will be protected against the costs associated with that loss. |