A standard range of Florida commercial insurance for a typical small business usually includes coverage for property, liability, business vehicle and workers’ compensation insurance. However if you are the owner of a professional practice, one that gives advice and opinion to other companies or individuals, you may wish to consider taking out professional indemnity coverage to financially protect you in the event of an error or malpractice suit.
Also known as Errors and Omissions (E&O), the coverage helps financially protect firms that provide advice from negligence claims from their clients. It contributes towards the cost of defending a claim and towards damages awarded in a civil lawsuit. The insurance should be structured to include coverage for a lawsuit brought by a client claiming that: an error on your part caused damage to their company; or a delay of a promised service or business misunderstanding caused damage to their firm. The insurance may also cover defense costs incurred and the agreed settlement amount up to the amount of coverage on the policy.
As professional companies that offer advice are wide and varied, errors and omissions coverage can be tailored to suit a professional company’s needs. This coverage is an essential part of an advice-giving company’s Florida commercial insurance package. For more details about professional liability, simply contact one of our professional agents.