Professional Liability (Errors & Omissions) Insurance

What Exactly Does Your Business Need?

When buying professional liability coverage, there are considerations that will help you determine exactly what you need:

• Is the insuring agreement broad enough to capture all of the current and future work of the policyholder? Determine if the policy covers the scope of your organization’s professional tasks and services by reading the definition of the covered services in the policy. For example, in a medical professional’s professional liability coverage, the operative definition would be “medical services” or a comparable phrase. Simpson & McCrady LLC can help you determine if all professional tasks would be covered under the operative definition or if additional clauses would need to be added.
• What if there is a sale, merger or change in position at your organization? Discuss what these possible changes in services mean for your coverage. Is there approval needed to continue coverage?
• Are there any exclusions? Look at the list of exclusions that resist coverage. Review the list to make sure it does not preclude coverage for any professional services or tasks that you need covered.
• Is an extended reporting period an option under the policy? These provisions offer extensions of time to report claims that would otherwise fall outside the policy period, as long as the act/omission resulting in the claim occurred during the policy period. Find out what extended reporting period options are available and discuss how much time the policyholder may need to report a claim.
• Can the policy be customized or modified? Can extensions be added? Common additional coverage includes disciplinary proceedings or reduced retentions and may be of importance to your business.
• Have there been any past tasks or activities at your business that could potentially result in a claim? Have there been past instances where a claim was filed? What was the result? Discussing the specifics of these with Simpson & McCrady LLC can help determine what coverage specifications you need now, to prepare you for the future.

Other ways to protect your business, in addition to professional liability insurance include the following:

• Establish a high standard for product and service quality control at your organization.
• Keep all company records up-to-date and accurate.
• Train employees thoroughly and properly.
• Ask Simpson & McCrady LLC for safety and compliance information.