{"id":748,"date":"2018-09-10T13:00:21","date_gmt":"2018-09-10T13:00:21","guid":{"rendered":"https:\/\/www.insurancebee.com\/blog\/?p=748"},"modified":"2023-02-08T10:04:02","modified_gmt":"2023-02-08T10:04:02","slug":"who-needs-professional-liability-insurance","status":"publish","type":"post","link":"https:\/\/www.insurancebee.com\/blog\/who-needs-professional-liability-insurance","title":{"rendered":"Who needs professional liability insurance, or E&O?"},"content":{"rendered":"
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\"Who<\/figure>\n<\/div>\n\n\n

Among the findings from our recent survey<\/a> that surprised us, was the number of SMB owners who don\u2019t have the right insurance<\/strong>.<\/p>\n\n\n\n

Like sales, marketing and media consultants, engineers and architects:<\/p>\n\n\n\n

\u2018Yes\u2019, they said, \u2018we\u2019re covered. We\u2019ve got general liability insurance\u2019.<\/p>\n\n\n\n

That\u2019s great.  Because if you visit clients or they visit you, you need general liability insurance<\/a>. It protects you from claims for bodily and personal injury, as well as property damage.<\/p>\n\n\n\n

So, if a client trips over your laptop cable and hurts themselves in your office, general liability insurance can pick up the tab for medical expenses and your legal defense, if they decide to sue.<\/p>\n\n\n\n

But let\u2019s get something straight. General liability insurance does NOT cover claims made against you for professional negligence.<\/p>\n\n\n\n

And if you offer a professional service \u2013 which, as sales, marketing or media consultants, architects and engineers, you do \u2013 you\u2019re at risk of claims like these on a daily basis.<\/p>\n\n\n\n

What\u2019s professional negligence?<\/strong><\/h2>\n\n\n\n

Your clients expect a certain \u2018standard of care<\/a>\u2019. Basically, they expect you to help, not harm, their business. And if you breach that expectation, that\u2019s professional negligence<\/a>.<\/p>\n\n\n\n

That breach might be personal injury (libel or slander) your work caused. It can also be as a result of a mistake you made, or something you left out.<\/p>\n\n\n\n

Say you\u2019re a freelance marketing consultant, working on campaigns for a number of different clients at the same time. Instead of \u201c$10 off\u201d, an ad you posted on social media runs as \u201c$100 off\u201d for several days before you spot the typo and correct it.<\/p>\n\n\n\n

It was a genuine mistake. But it\u2019s cost your client dearly. And guess who they\u2019ll expect to cover their losses? Yup. You.<\/p>\n\n\n\n

Thing is, we all make mistakes. And if you\u2019re juggling several clients at once and trying to hit deadlines, it\u2019s easy to overlook something.<\/p>\n\n\n\n

But if you\u2019re uninsured and you end up in court, facing a claim of professional negligence, you\u2019ll have to find the money for legal fees and compensation yourself.<\/p>\n\n\n\n

Trouble is, a suit alleging professional negligence won\u2019t just dent your finances will it? It could damage something priceless \u2013 your professional reputation.<\/p>\n\n\n\n

Ways to reduce risk<\/strong><\/h2>\n\n\n\n

Of course, avoiding negligence suits is the smart thing to do. And there are measures you can take, to reduce the risk.<\/p>\n\n\n\n

You can:<\/p>\n\n\n\n