California Professional Liability / E&O

Professional Liability / E&O

In addition to business owners’ policies, professionals operating their own businesses should obtain professional malpractice liability insurance, known as errors and omissions insurance. A good malpractice insurance policy protects professionals against financial losses from lawsuits filed against them by their clients.

Frequently Asked Questions (FAQ)

What is covered by professional liability insurance?

Professional liability insurance helps cover you and your company if you make a mistake in your professional services.
This coverage is also known as errors and omissions insurance (E&O) or in some countries as professional indemnity insurance.

What is the difference between professional liability and general liability?

General liability covers physical risks, such as bodily injuries and property damage. 
Professional liability covers more abstract risks, such as errors and omissions in the services your business provides.

Errors and Omissions insurance (“E&O Insurance”) is necessary for professionals expected to perform their job with a requisite level of expertise as it protects them from negligent acts. ABS Insurance & Financial Services is well-versed in E&O Insurance and other types of malpractice insurance policies; please feel free to contact us for assistance with your insurance needs.

Professional organizations’ policy premium is usually based on several factors: the profession involved, the number of professionals covered, annual revenues, the business location, the limit of liability, and the deductible.  Ensuring the lowest premium requires numerous safety precautions such as accurate calendaring systems and other clerical safeguards.  The E&O insurance and malpractice liability “insured” usually include the covered organization itself and it’s past or present partners, directors, officers, and employees while acting within the scope of their duties. Malpractice liability coverage includes legal defense costs – no matter how baseless the allegations. Errors and Omissions Insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy. Please contact ABS Insurance & Financial Services for a quote today.


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