Posted on February 27, 2020
Understanding Professional Liability Insurance
Professional liability insurance (AKA errors and omissions insurance) is an important tool that a design company can use to protect from actual or against negligent acts in the performance of its specialist services.
Professional liability insurance coverage requires special care due to the exceptional nature of the policy that is provided. Knowing your coverage will give you an accurate understanding of what it is paying for you and can also help increase the profitability of your company. You can find an affordable professional liability insurance in your area.
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Also, your understanding of commercial liability insurance will help you purchase appropriate coverage to minimize the effects of claims. Purchasing commercial liability insurance is an essential option. The top for professional liability insurance can be more than one or two percent of the company's earnings.
As insurance agents specializing in serving your business, we realize the difficulties of professional liability insurance for design companies. We would love to discuss four basics with you through this professional liability insurance policy plan.
What does a professional liability policy cover?
Generally, the policy provokes actual or perceived negligence in the operation of specialist services. Struggling to satisfy the quality of maintenance of their respective industry will typically trigger neglect.
Professional solutions typically include architecture, interior design, engineering, and land surveying. Some policies include underwritten professional services in the form of environmental consulting, construction management and technical consulting.
Another thing worth mentioning is that many client-written agreements have negative compensation terms, which will set your company in the unfortunate state of triggering this compensation.