Professional Liability in Warminster PA & Phoenixville PA
In today’s litigious society, lawsuits against businesses are common. And as a business owner, you need to be prepared to protect the integrity of your company if an incident or mistake turns into a claim.
At John Holroyd Agency, we understand that mistakes happen. That’s why we’re committed to helping you create a Professional Liability policy that keeps your day-to-day operations protected should your business be held legally liable.
What Does Professional Liability Cover?
While it’s important for your business to have general liability coverage for property damage and bodily injury, John Holroyd Agency recommends adding Professional Liability Insurance to your business portfolio because it insures the people and/or entities of your business from negligent claims made by third parties, or even internal sources.
From failure to render a service to malpractice suits, Professional Liability can provide a wide variety of options, such as:
Errors and Omissions Liability (E & O) – E & O covers any mistakes made by employees who work on behalf of your business, if your business charges fees for your services. It can include coverage for any errors such as failure to perform or violations of contract. Depending on your industry, your insurance needs will vary.
Directors and Officers Liability (D & O) - Having financial protection for your business’s Directors and Officers can prevent loss in the event that they are held liable from actions related to their corporate positions. This can include anything from conflicts of interest to mismanagement of company assets and violation of laws.
Fiduciary Liability - Fiduciary covers claims that involve the violation of the Employee Retirement Income Security Act, or ERISA. If a manager, for example, violates the financial obligations of ERISA, having the right coverage can protect your company if held liable in situations from imprudent investments to failure to enroll employees.
Employment Practices Liability - With proper insurance, your business can be protected if a worker claims that his or her rights have been violated. This can include violations from sexual harassment and discrimination to violations of the Americans with Disabilities Act (ADA), mismanagement of employee benefit plans, and wrongful termination.
Contact a repetitive with John Holroyd Agency today to prevent mistakes and errors from becoming major losses for your business.
Understanding Professional Liability Coverage:
Someone might visit your business, slip and fall, and sustain an injury. Or, you might damage an item belonging to someone else while making a house call. In these cases of physical loss, commercial general liability insurance might apply. This coverage is a bit different from professional liability insurance, but still necessary to have.
Professional liability policies will not apply to internal matters. For example, if an employee gets hurt on the job, then they will likely qualify for workers’ compensation. Should someone accuse you of professional misconduct towards interviewees, employees or those whom you let go, then you might need employment practices liability coverage to pay for the claim.
Most liability policies don’t apply to losses of the business itself. Physical damage will need protection from commercial property insurance. A loss the business sustains because of an interruption in work (by a covered event) might have coverage under business interruption or income replacement insurance.
Most professional liability policies exclude certain mistakes or misconduct completely. Policies will not cover losses that result from criminal actions, for example. So, if your business gets sued under a criminal charge, then your policy likely will not help you out.
Professional liability policies vary from carrier to carrier. Therefore, examine your policy carefully to understand where coverage gaps might exist. Your agent can help you determine the best way to address these concerns.