Professional Liability Insurance in Colorado Springs, CO
Your organization strives to provide reliable and consistent services to clients and customers. Unfortunately, perfection is not sustainable regardless of how experienced or diligent your company may be. Even the most meticulous businesses may eventually commit an error that could adversely affect a client or other party. In such situations, you may be liable for the resulting losses. As such, the financial protection provided by a professional liability insurance policy may be invaluable.
What Is Professional Liability Insurance?
Also known as errors and omissions (E&O) insurance, professional liability insurance represents a contractual agreement between your organization and its insurance provider. By purchasing and maintaining a policy, your insurer agrees to provide financial assistance in response to covered incidents that might otherwise lead to significant out-of-pocket losses for your company.
Although coverage details may vary, professional liability insurance typically includes coverage for legal expenses and financial losses arising from the following allegations:
Who Needs Professional Liability Insurance?
Professional liability insurance should be considered an integral loss control measure for any organization that provides professional services, guidance or advice. This may include, but is not limited to, the following:
- Real estate and property managers
- Health care professionals
Does Umbrella Insurance Cover Professional Liability Insurance?
Commercial umbrella insurance is a secondary type of coverage capable of providing additional financial assistance in response to many common incidents if the liability limits of other policies, such as general liability and commercial auto, have been exhausted. However, in most cases, commercial umbrella insurance is not capable of backing up professional liability policies.
Instead, your organization should consider purchasing excess liability insurance. Excess liability coverage, also referred to as excess E&O insurance, functions similarly to commercial umbrella insurance by providing an extra layer of financial protection beyond a specific policy’s liability limits, such as your professional liability coverage. As such, even particularly excessive losses may not lead to significant out-of-pocket costs.
Is Professional Liability Insurance the Same as Malpractice Insurance?
Malpractice insurance, also known as medical malpractice insurance, is a type of professional liability insurance specialized for the health care industry. These policies can provide critical coverage for medical professionals and organizations, as even a slight error or miscalculation in a health care setting could have catastrophic consequences for a patient’s health, and the resulting lawsuits could incur irreparable financial ramifications.
Get the Right Coverage
At Legacy Insurance, our agents have extensive experience serving the coverage needs of businesses, families and individuals. We will draw on our collective knowledge to analyze your organization’s circumstances, identify risks and exposures, and compose policies that provide robust financial security. Contact us today to get a quote or learn more.