Professional Liability

Do you or your business provide professional services or advice to other businesses or individuals? Could your counsel or service lead to losses by your client for which you could be held responsible? If so, you’ll likely want to purchase professional liability insurance, also known as errors and omissions insurance (E&O). Claims not covered by general liability insurance that are covered by professional liability insurance include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

What professional liability insurance covers

Professional liability insurance will pay the cost of legal defense against claims and payment of judgments against you, up to the limit of the policy. In general, coverage does not extend to non-financial losses or losses caused by intentional or dishonest acts. Other fees, such as licensing board penalties, may also be included. The amount of professional liability insurance you will need and how much it will cost depends upon the size of your business and the level of risk it poses.

Professional liability cautions:

Business Owners Policy (BOP): Business Owners Policies do not include Professional Liability. If you need Professional Liability, you will need to request it and it will be a stand-alone policy.
General Liability: General Liability protects companies, and the actions of non-professional employees. If you require Professional Liability, you will need to request it and it will be a stand-alone policy.
Commercial Package Policy (CPP): Commercial Package Policies typically do not include Professional Liability, but can be easily added as an endorsement.

Some of our targeted industries

While Sanford Family Insurance can support nearly every situation, below are the industries that Farmers has a strong appetite and business areas that we believe we can better compete.