Professional Liability

Looking for Professional Liability Insurance in Michigan?

Aitken & Ormond Insurance has you covered — literally.

Professional Liability Insurance (also knows as Errors & Omissions Coverage) covers a wide range of professionals who make their living from their unique professional expertise.

Who needs Professional Liability Insurance?

Lawyers, Doctors, Architects, IT Professionals, Real Estate Brokers, Consultants, and Engineers are just a some of professions who need to be properly covered by Professional Liability Insurance.

If you’re in one of those professions and/or your business relies on your professional expertise, you’re expected to have a certain level of training in your industry or field. Your services and/or advice must meet standards set by your state, industry, and/or written client contracts and agreements.

Failure to meet these standards could result in a substantial financial loss for your client(s), resulting in a significant lawsuit. This is where Professional Liability Insurance comes into play, and why Aitken & Ormond Insurance is your go-to insurance company in Michigan no matter what industry you’re in.

How does Professional Liability Insurance work? What does it cover?

Professional Liability Insurance triggers in a few different situations:

  • You make a mistake that costs your client(s) money
  • Undelivered results/services
  • Negligent services

Work Mistakes

No matter how careful you are, making mistakes is a fact of life. After all, we’re human. If one of these work mistakes causes a financial loss for one of your clients, it could be problematic for your business.

Professional Liability would kick in, in the event one of your clients attempted to sue you as a result of your mistake.

Undelivered Results/Services

Sometimes the product/service you describe in your client contracts just doesn’t work the way it was represented to the client. Should that happen, and you get sued, Professional Liability Insurance would apply.

Example: A business consultant recommends you buy a high priced piece of equipment based on high income projections and those projections end up being way off, resulting in a financial loss for the client. That client can actually sue to make up those losses and cite their contract for support.

Negligent Services

Your expertise can sometimes be a double-edged sword. It can help you earn clients, but it can also set really high expectations.

Example: Architects have the skill and education to design buildings that both meet client demands and comply with building codes. But let’s say an architect makes an oversight that compromises a building’s safety. The building owner can sue for negligence (the legal standard of being unreasonably careless).

Unfortunately, negligence suits can be pricey. A court may award the client damages, but it can also monetarily punish you to deter future recklessness.

What to do next

Keep in mind that Professional Liability only covers the “economic” or financial losses suffered by clients and/or third parties, as opposed to bodily injury (BI) and property damage (PD) claims. This is because the latter two types of loss are typically covered under commercial general liability (CGL) policies, which Aitken & Ormond Insurance can also help with.

If you’d like a personalized Professional Liability proposal for you and your business, Aitken & Ormond Insurance is here to guide you. Call our office today, or start your quote online in a matter of seconds.

 

The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.

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Are you ready to save time, aggravation, and money? The team at Aitken Ormond Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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