Professional Liability

Commercial General Liability policy does not cover professional liability, also known as Errors and Omissions (E&O) insurance. Commercial General Liability covers your business for bodily injury and property damage. Your E&O insurance covers you and your business for potential major lawsuits resulting from negligence and failure to perform your services as stated.

 

There are several main causes of E&O including misrepresentation and omission in a contract causing the client an excess amount funds to resolve an issue, loss of client data that are irreplaceable, system failure leaving client incapable of operating the business, misinforming the client that results in a detrimental decision, so on and so forth.

 

Therefore, if your business falls under the category of specialized services, you will definitely want to have a Professional Liability policy. It is a critical component in helping your business sustain the risk of providing services to your clients. If your business does not fall under this category, you might still want to have this coverage depending on the nature and unique characteristics of your company.