Professional liability insurance, also known as errors and omissions insurance, is a type of insurance that protects businesses against claims of negligence, errors, or omissions in their professional services. This type of insurance is particularly important for companies that provide professional services, such as lawyers, accountants, architects, and consultants.
Companies that provide professional services are at a higher risk of being sued by their clients for errors or omissions in their work. For example, if a lawyer makes a mistake in a legal case, or if an accountant provides incorrect financial advice, the client may decide to sue the company for damages. Professional liability insurance can help to protect these companies from the financial consequences of these types of lawsuits.
Overall, companies that provide professional services benefit from purchasing professional liability insurance. This type of insurance can help to protect these businesses from the financial consequences of lawsuits and can help to ensure that they can continue operating successfully.
