Let's face it, we all make mistakes
But what happens when your mistakes result in a financial loss to your client?
Professional Liability or Errors and Omissions insurance will help! Your General Liability policy or your business owners policy will only protect you against a claim that results in bodily injury or property damage. In the case of a CPA who accidentally puts the decimal in the wrong place, the injury wouldn't be bodily injury or property damage, it would be a financial loss.
Suppose you are not at fault for the error? Your Professional Liability policy would still defend you if your client brings a law suit against you. Defense costs can be extremely expensive even if you are not found negligent. Most importantly, Errors and Omissions or professional liability insurance might save you from extreme embarrassment, a lost client or worst of all -a bad reputation.
It is important to note that this policy is generally written on a 'claims made' form. Only work performed while the policy is in force and claims filed during the term of the policy are covered. Any claims submitted after the cancellation of your policy would not be covered, even though the work was performed while the policy was in effect. Work with your agent upon retiring or closing your business to set up 'tail coverage' to protect you. If you have more questions regarding Errors and Omissions or Professional Liability Insurance please contact one of our Trusted Choice Agents.