What is Professional Liability Insurance?
Professional liability insurance, also referred to as errors & omissions insurance, is an insurance policy that helps protect you and your business against third-party claims for negligence or mistakes made in professional services.
What Does It Cover?
Professional liability insurance typically covers claims for any of the following:
- Copyright infringement
- Inaccurate advice
- Breach of contract
- Incomplete work
- Personal injury
- Work mistakes and oversights
- Undelivered services
- Missed deadlines
Professional liability insurance can also cover the cost of legal defense when a lawsuit is filed against your business by a dissatisfied customer. An experienced insurance attorney can help you understand the claims covered by a professional liability policy and whether your business needs one.
Who Needs It?
You may consider getting a professional liability insurance policy if your business or company provides:
- A professional service
- Contractual service to clients
- Regular professional advice to clients
Some types of businesses or professionals that may need professional liability coverage include:
- Real estate agents
- Insurance agents
Having professional liability insurance remains an excellent idea for any business or professional that offers professional or contractual services. Should a dissatisfied client sue your business, you can file a liability insurance claim to protect you and your business.
Filing a Claim
To file a professional liability insurance claim, you should follow the steps below:
- Review your professional liability insurance policy
- Notify the insurance provider by filling out an Initial Incident Report form
- Ask the insurer's representative questions about the claim
- Gather necessary records and documentation regarding the incident
- Hire an experienced attorney to review your formal complaints and help negotiate with the insurance company and plaintiff
When a customer files a lawsuit against your business or company, it is important that you act quickly to enable you to handle the situation properly. A skilled Arizona insurance attorney can guide you through the claims process and strive to ensure the insurance company doesn't deny your claim.
Common Reasons for Claim Denials
Some of the most common reasons for insurance claim denials include:
- Liability disputes
- Unpaid premiums
- Delayed notification
- Policy exclusions
- Insurance bad faith tactics
If the insurance company denies your claims due to a valid or invalid reason, an experienced attorney can help file an appeal to challenge the denial or take appropriate legal action against the insurance provider.
Work With an Experienced Insurance Attorney
Getting sued is a nightmare for any business owner, professional, or company. In most cases, lawsuits are expensive, time-consuming, and bad for your business reputation. Fortunately, professional liability insurance can help protect your business by paying for the legal expenses if you're sued over an error, negligence, or omission. An experienced insurance attorney can evaluate your unique situation and determine the ideal coverage option that best suits your business needs.
At Arnett & Arnett, PC, we have the resources and experience to guide and advise individuals and businesses in professional liability insurance matters. As your legal counsel, we can evaluate your business needs, help you understand the benefits of professional liability insurance, and enlighten you on your possible options. Even if your claims have been denied, our team can help file an appeal.