Architects understand that the signs of a well-constructed, beautiful building are often in the details. Similarly, a strong business is often defined by the small but wise decisions that business owner has made. Investing in professional liability insurance is one such small but important business decision.
Professional Liability Defined
Many professionals carry professional liability insurance. The most well known type of this insurance, also called errors and omissions insurance, is the malpractice insurance that doctors carry to protect them in case of medical mistakes. The professional liability insurance architect firms hold often protects them from problems related to timing, structural issues, or environmental concerns but can be customized to address even more unique exposures.
Qualities of a Great Insurance Agent
When shopping for an insurance agent, there are few key qualities to watch for. As with any service professional (architects included), a great insurance agent should be personable. They should be capable of discussing their business in a way that it is easy for you to understand. Great insurance agents are also willing to learn about your business. Many agents have worked with architects in the past. These agents are best suited to develop the professional liability insurance architect firms will find most useful. Experienced agents are also best able to handle claims if they are filed. Choosing to purchase professional liability insurance is a good business decision. Choosing to purchase professional liability insurance from an experience agent who knows the architecture industry is a great business decision.
When you own a computer consulting business, people rely on your professional advice to fix problems with their expensive electronic devices. Even if you are extremely confident in your ability to do everything correctly, you may unexpectedly find yourself on the wrong end of a negligence lawsuit. That is why it is important to make sure you have sufficient insurance coverage to protect your business and avoid potential bankruptcy from legal costs. Here are some pointers for choosing the right professional liability insurance computer consultant coverage for your needs.
Find Out What Your General Liability Insurance Covers
If you are not completely convinced that you need professional liability insurance computer consultant coverage, you should take a look at your current general liability insurance policy and make sure you are familiar with it. If your policy is like most others, then it probably covers injury to other people and property, but it may not cover a wide variety of other claims that can be potentially brought against you, including:
If you want to give your business the best chance of succeeding, you should talk to your insurance agent about getting a quality professional liability insurance policy. Not only will you have greater peace of mind, but you will also be more willing to help customers with their many problems if you know that you are financially protected with proper insurance coverage.
A wholesale insurance broker is a licensed broker providing specialized insurance products to retail insurance agents and brokers, often referred to as retail agents, and supporting those products with specialized expertise. Retail agents representing consultants require a consultants professional liability insurance wholesaler to provide policies for this important sector of the business world.
The job of a professional consultant is to give expert advice to businesses and organizations they are hired to provide services to. Consultants often work with all types of organizations and industry sectors, including technology, marketing and non-profit companies. Consultants may also work as independent contractors and often work for several different clients.
Consultants are faced with many risks and exposures
A professional consultant is never immune to the possibility of a lawsuit claiming damage or harm because of a negligent act, error, or omission arising from the performance of an individual or firm’s professional work. This is due to the fact that the company is making decisions based upon their professional consultation, which is why they purchase protection, in the form of insurance, from an agent in case they come under fire for any advice they dispense.
When something goes wrong, errors & omissions (E&O) claims are what comprise most of the suits brought against a consultant or consultancy firm, and the main reason why coverage is so crucial. It is the responsibility of the agent to provide coverage options, which are sought from the insurance wholesaler, who utilizes specialty insurers (also called “markets”) who can consider accounts that the retail agent cannot place competitively with their standard markets.
A retail agent expects the wholesale broker to provide proposals for insurance and expertise for these specialized accounts because of their access to a wide range of specialty markets for professional liability placements. A viable wholesale agent can offer broad coverage for consultants that provide protection against claims alleging:
- Improper fact verification
- Misrepresentation of facts
- Loss of data, improper procedures or negligent handling of data
- Failure to prevent electronic theft of records and confidential information
- Employee theft and sale of client’s trade secrets
- Deliberate dissemination of false information
- Violations of state and federal law, such as violation of right to privacy
Agents representing consultancy firms should take full advantage of the services of a consultants professional liability insurance wholesaler for many of their clients needs.
Two words that no attorney wants to hear in connection with their name: dishonesty and incompetence. The rules of legal ethics in most states require attorneys to be honest and to do their job with a certain level of competence. By lying to, or misleading a client, or even performing their duties at a level below that of a competent attorney, lawyers are setting themselves up for a day in court – with themselves as the defendant.
The first thing an angry client may do is to file a complaint. Every state has some sort of agency that is responsible for disciplining attorneys that violate the rules of legal ethics. In many states, this is the bar association, and in others it could be the state supreme court.
The first thing every attorney should do is to purchase some type of malpractice coverage, or lawyer professional liability insurance policy to protect him or her, especially from frivolous lawsuits.
Behavior that could lead to a lawsuit
An example of the types of behavior that attorneys may exhibit that could lead to a malpractice claim includes:
- Misusing a client’s money
- Failing to show up at a court hearing
- Lying to a client or a judge, or
- Participating in a criminal endeavor
By engaging in any of these sorts of activities, or behaving in a way that was dishonest or incompetent, an attorney is likely to become named in a lawsuit. Performing inadequate legal work, which in simpler terms means he or she is not doing a good job on a case, leads to frustration and anger that could be prevented by performing the duties as outlined by any binding contract.
One way that clients often find out that their attorney is not doing good work on their case is by seeing that the attorney has actually stopped working on their case. Most clients will likely give their lawyer the benefit of the doubt and to try to get in touch with them and voice their concerns. If they find that their attorney has not been working diligently on the case, they may decide to simply find a new attorney.
They still may decide to sue their former attorney and also ask for money damages due to financial hardship because, for example, the former attorney withheld their case file even after a request was made for it. An attorney that is accused of dishonesty or incompetence can only benefit from having adequate lawyer professional liability insurance. Speak to an agent today.
Insurance agent professional liability insurance, also known as errors & omissions (E&O) coverage, is for agents that provide an essential service to families and businesses by helping them find and obtain the proper insurance protection. Many insurance agents often don’t adequately consider the risks that are involved with their line of work. Simply by offering their recommendations for certain policies and services, whether as a purchase or declining certain insurance protection, agents could be setting themselves up for a lawsuit.
This can result in a liability claim in the event a client feels that they were given bad advice, which ended up being a costly mistake. Clients that end up facing a major problem with an insurance policy, (or a lack of coverage) could file a lawsuit against the insurer, possibly costing them their career, income and possessions.
Insurance agents gain valuable protection from E&O Insurance
Statistics show that nearly one out of seven insurance agents will be involved in an E&O claim at least once during their career. Brokers are also ranked fourth on the list of the most often sued professionals. An agent that is not properly covered by E&O insurance risks the likelihood of being held responsible for any damages if a claim is ever filed against them.
Professional liability coverage for insurance agents protects against any claim, whether it is real or merely perceived by the claimant that resulted from their personal involvement in the sale or servicing of an insurance product. The right E&O insurance plan will provide protection against claims arising from negligent acts, or errors or omissions from any activities or services provided as an individual agent or broker.
Although defending against a claim is always an undesirable circumstance, when the time comes that an agent is faced with this prospect, it will be good to know that the knowledge of the staff responsible for working on the claim will be invaluable when the time comes to protect both the agent and the agency. Look for a company that has specific experience in this very specialized insurance agent professional liability area. Speak to an agent today with any questions or concerns.