BizInsure – Protect Your Business With Simple, Affordable Insurance

Professional Liability insurance—sometimes called Errors and Omissions (E&O) liability insurance, protects you and your business from bearing the full cost of defending a lawsuit against you pertaining to “negligence” or “failure to perform.” Those who perform services for others can make mistakes, overlook a critical piece of information, forget to do something, misstate a fact, be misunderstood or misinterpreted, misplace something, etc. and have the potential to be sued by clients or other third parties. Significant risks can be mitigated by an affordable Professional Liability insurance policy that can help protect against allegations such as:

Error, omission, or negligence in providing a service
Failure to provide a service
Violation of good faith
Overpromising
Improper documentation
Malpractice
Mismanagement
Misrepresentation of facts
Nondisclosure
Violations of state and federal law
And others

There are a wide range of occupations that use Professional Liability insurance ranging from consultants and hair stylists to event planners and accountants, and beyond. In today’s hyper litigious world, if you provide a professional service to others for a fee, you have Professional Liability exposure. Professional Liability Insurance often is the most important type of insurance that a company can purchase, as it protects the individuals and the company from potentially catastrophic litigation costs associated with claims relating to negligence or product failure. Many contracts require that you have Professional Liability Insurance and, even when it’s not required, for our prices it’s worth the added peace of mind. Preparation isn’t everything about building and running a business but without being prepared you can lose everything you’ve worked so hard to build. No matter what Industry you’re in, people make mistakes, people point fingers and people misunderstand – when they do, BizInsure ensures you’re ready. Even if you have done nothing wrong, but a client alleges negligence on your part, the policy will still protect you and pay the legal costs in defending you.

Consider the impact of a $100,000 lawsuit…or a million-dollar lawsuit on you and your business. Most small companies can’t absorb that kind of loss without devastating consequences. It’s important to remember that in the current business climate, you don’t have to do anything wrong to be sued. In fact, a large proportion of lawsuits are meritless. Regardless, such lawsuits must be defended, and that can be costly. Professional Liability insurance covers these legal defense costs and helps protects you from a current business climate comprised of:

A lawsuit-conscious public fueled by media publicity
An overabundance of lawyers
A belief that everyone deserves to be compensated
The idea that there is always a “deep pocket” with the ability to pay
An escalation of court settlements into the millions of dollars
Punitive damages that in some states can be doubled or tripled

A Professional Liability lawsuit can be triggered by almost anyone who is “touched” by the professional service and there is a very broad spectrum of potential for Professional Liability exposure.

Sample Situation A: Site designer sued for delayed product delivery
A Web site designer was hired by a Fortune 500 company to design a Web site that would be radically more advanced than any competitor sites. The timeline indicated by the Web site designer put the site online within four months. Two months into the project, several key personnel left the Web site design team, and the company scrambled to find other qualified personnel to complete the job. After an additional three months, the site was still not operational, but one of the client’s competitors had already launched a site that was an instant success. The client sued the designer for $6M in lost sales. The designer settled the claim for $ 4.75 million, $1 million of which was paid by the designer’s E&O policy. The remainder of the loss was uninsured.

Sample Situation B: Management consultant sued for offering negligent advice
A management consultant was hired by a small manufacturer to recommend strategies for increasing productivity. The management consultant identified three key areas in the production process that were causing bottlenecks. One recommendation was to expand the factory, another to change equipment, and a third to increase staff. The client accepted all the recommendations. In order to make the necessary capital improvements, the manufacturer had to shut down temporarily for two weeks. The client completed the expansion, increased staff, restarted operations, and started working to make up the productivity lost during the two-week shutdown period. However, one year after the substantial capital improvements were made, the client’s productivity actually diminished. The client sued the management consultant for offering negligent advice and was able to recoup most of the cost of the capital improvements from the management consultant’s E&O policy.