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What is Professional Liability Insurance - errors and omissions coverage?
A "professional" is someone whose vocation or occupation requires special training and skill. Historically, lawyers, accountants, architects, engineers, and medical professionals were the sole occupations that fell into this category as their industries established strict requirements and codes of conduct for regulation. In order to practice in these fields, it was necessary to undergo formal training, pass a state licensing exam, and to be provided with credentials. The first Professional Liability Insurance (Errors and Omissions Coverage) policies were devoted exclusively to this elite group.
Gradually, other types of professionals requiring Professional Liability Insurance (Errors and Omissions Insurance) began to emerge such as real estate agents, business consultants, social services counselors, educators, allied health care professionals, computer technology professionals, etc. While these other classes are often referred to as quasi-professionals under the eyes of the law, they have already developed their own industry regulations for education, testing, and accreditation.
Miscellaneous Professional Liability Insurance (Errors and Omissions Insurance) policies have been developed to address many of the litigation concerns of these new classes of professionals such as computer information technology professionals.
Professional Liability (Errors and Omissions Liability) insurance provides protection against certain types of lawsuits arising out of negligent acts, errors, or omissions committed during business activities and which result primarily in economic damages that are not related to bodily injury, property damage, personal injury, or advertising injury.
It is important to understand that the Professional Liability (Errors and Omissions Liability) insurance policy was meant to dovetail with the General Liability policy. The General Liability policy covers lawsuits alleging bodily injury, property damage, personal injury, and advertising injury. As a result, these types of injuries are not covered by a Professional Liability (Errors and Omissions Liability) insurance policy.
Professional Liability (Errors and Omissions Liability) insurance policies are meant to respond to lawsuits alleging solely economic damages where the client has lost money as a result of a negligent act, error, or omission in the performance of the professional services.
Find out how much Professional Liability (Errors and Omissions Liability) Insurance for information technology companies can cost for you. |
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Sadler & Company, Inc.
3014 Devine St.
P.O. Box 5866
Columbia, SC 29250
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