Professional Liability Insurance vs Errors and Omissions Insurance Greenville, SC

Depending on the industry, errors and omissions insurance, which covers lawsuits over work mistakes, is also called professional liability coverage or malpractice insurance.

Professional Liability Insurance vs. E&O vs. Malpractice Insurance

You may hear professional liability insurance referred to by many different names, including E&O insurance, malpractice insurance, and more. These different insurance terms are used interchangeably. No matter what it's called, this type of insurance protects you from lawsuits resulting from work mistakes, missed deadlines, professional negligence, and more.

What is Professional Liability Insurance?

Professional Liability insurance is essential for many professionals, from consultants and accountants to architects. It's designed to protect them from the high risks associated with doing their job well - whether they work alone or as part of a company.

Other types of insurance that fall under the Professional Liability umbrella are Cyber Liability, Foreign Liability, Liquor Liability, Pollution Liability, and Errors & Omissions.

What Is Errors and Omissions Insurance?

Errors and omissions coverage protects professionals, real estate agents, lawyers, and IT sectors from claims made due to professional mistakes and negligence. You may do something wrong (error) and miss a piece of information (omission), but this insurance will have you covered. It is required for both service and advice provider companies.

What Does Professional Liability Insurance Cover?

Remember that we will use professional liability insurance only because it is the same as errors and omissions insurance.

Both Insurance options cover you when you make a mistake in the professional service you give to your client. There will always be mistakes whether you are a newbie or an expert.

The client who receives your professional service would sue you if your mistake resulted in financial loss.

The tricky part is a client may sue you for anything that makes them believe there is a mistake. Although you are the professional here, it is a mistake if your clients think you made a mistake.

Professional Liability Insurance: What Does It Cover?

Personal Injury - This covers damage to someone's character that may be caused by an advertisement or social media post.

Inaccurate Advice - This covers damage that occurs due to your inaccurate professional advice.

Negligence - This covers when you become careless about your client's needs and fail to carry out the needs of your client.

Misrepresentation - This covers when a false statement of fact is made by one side and affects the other side's decision to agree to a contract.

What Professional Liability Insurance Won't Cover

Physical Injury or Property Damage: When your service injures someone or damages their property, there is separate insurance for this kind of claim.

Data Violation: Data breaches can be costly for businesses that lose important data. Cyber liability insurance can help protect against these types of losses.

Work-related Illness: If an employee falls ill due to their job, they are covered by workers' compensation insurance.

How Does Professional Liability Insurance Work?

There are two types of professional liability insurance: a retroactive date policy, which covers incidents that occur on or after a certain date in your policy, and an extended reporting period policy, which allows you to make claims after your policy has expired for a certain period of time.

Who Should Get Professional Liability Insurance?

If you are a professional or have a company, you should get professional liability insurance. This type of insurance covers advice-based services, services provided directly to customers, and contract signing. If your business falls into one of these categories, you should consider getting this type of insurance.

Malpractice insurance

The term malpractice insurance is used by doctors and lawyers. This policy covers lawsuits over wrongful death, professional negligence, and other work mistakes in these industries.

Professional liability vs. general liability insurance

E&O insurance protects your business from lawsuits resulting from errors or omissions in your work. To supplement E&O insurance, general liability insurance covers lawsuits from people who were injured or had their property damaged at your business location. Both types of insurance are important for tech businesses.

Need Professional Liability Insurance or Errors and Omissions Insurance? Call The Morgano Agency!

The Morgano Agency is a full-service insurance agency that specializes in professional liability insurance and errors and omissions insurance. We're based in Greenville, SC, but we serve businesses all over South Carolina.

We understand that every business is different, which is why we offer custom insurance plans that are designed to meet your specific needs. We'll work with you to make sure you have the coverage you need at a price you can afford.

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Professional Liability vs. Errors and Omissions Insurance