Insurance articles and information for home, life, car, travel, health and professional liability. Risk management information for lawyers.

This article does not any. Unsourced material may be challenged and. (June 2017) () Professional liability insurance ( PLI), also called professional indemnity insurance ( PII) but more commonly known as errors & omissions ( E&O) in the US, is a form of which helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a claim made by a client, and damages awarded in such a. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm.

Professional liability insurance may take on different forms and names depending on the profession, especially medical and legal, and is sometimes required under contract by other businesses that are the beneficiaries of the advice or service. Coverage sometimes provides for the defense costs, including when legal action turns out to be groundless. Coverage does not include, nor a wide range of potential liabilities under that are not enumerated in the policy, but which may be subject to other forms of insurance. Professional liability insurance is required by law in some areas for certain kinds of professional practice. Contents • • • • • • • • Rationale [ ] The primary reason for professional liability coverage is that a typical general policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim. Other forms of insurance cover, and. But various professional services and products can give rise to legal claims without causing any of the specific types of harm covered by such policies.

Guitar Center Gain Program Website there. Common claims that professional liability insurance covers are,, violation of and, and inaccurate advice. Examples: • If a software product fails to perform properly, it may not cause physical, personal, or advertising damages, therefore the general liability policy would not be triggered; it may, however, directly cause financial losses which could potentially be attributed to the software developer's misrepresentation of the product capabilities. • If a custom-designed product fails without causing damage to person or property other than to the subject product itself, a product liability policy may cover consequential damages such as losses from business interruption, but will generally not cover the cost to redesign, repair or replace the failed product itself. Claims for these losses against the manufacturer may be covered by a professional liability policy.

Coverage [ ] Professional liability insurance policies are generally set up based on a claims-made basis, meaning that the policy only covers claims made during the policy period. More specifically a typical policy will provide indemnity to the insured against loss arising from any claim or claims made during the policy period by reason of any covered error, omission or negligent act committed in the conduct of the insured's professional business during the policy period. Claims which may relate to incidents occurring before the coverage was active may not be covered, although some policies may have a retroactive date, such that claims made during the policy period but which relate to an incident after the retroactive date (where the retroactive date is earlier than the inception date of the policy) are covered. Interstellar Rift Alpha 25autollc more.