Professional Liability Insurance: Protecting Your Business from Lawsuits
Professional liability insurance covers your business against liability when an employee makes a professional mistake with a customer. Your business can be sued if the customer or client suffers a financial loss due to your employee’s actions. At Griffith Insurance LLP, we can help business owners in West Chester, PA protect themselves from a lawsuit with an Errors and Omissions (E&O) policy.
Understanding an Errors and Omissions Policy
An E&O policy provides the policyholder coverage for legal expenses if someone sues you for liability. If you lose the lawsuit, the policy will pay for the damages. The policy prevents your business from being held liable for the costs incurred by a lawsuit, regardless of a win or loss.
The policy works retroactively in that it will provide coverage for a claim during the time you held the policy. That is, you can cancel the policy yet still get coverage for a claim that happened during the period when the policy was in force.
The Need for Professional Liability Insurance
A professional is someone who provides advice or guidance, such as a doctor or a lawyer, to achieve the best possible outcome for a client. However, no one is perfect, and mistakes are made that have an adverse outcome for the client in the form of a financial loss. Sometimes, it happens that the professional did all the right things, but the client still suffers and decides to sue the professional and our business.
Reducing the Impact of a Claim on Your Business
Call us at Griffith Insurance LLP in West Chester, PA today for more information about getting an E&O policy for your business and employees. We’re here to explain how this type of coverage works and how it enables you to focus on running your business while a lawsuit is in motion.
