- Technology and software firms
- Health, beauty and well-being services
- Therapists
- Architects and engineers
- Real estate agencies
- Consultants
- Marketing and advertising firms
- Medical professionals
- Wedding and event planners.
Coverage gaps
If you are relying solely on a general liability policy, it may not cover you in the event of a lawsuit over an issue with the services that you have rendered. Professional liability coverage can be especially important if you have customers who sue you for non-performance of your products or services, or withhold payment due to a contract dispute. This is especially true if you are:- Performing consulting work, training or other services for customers.
- Involved in work requiring special licenses.
- Designing, recommending, installing or testing products.
- Designing software or apps to a client’s specifications.
What it covers
Negligence – Professional liability insurance coverage can protect you and your business against actual or alleged errors and omissions that may occur while providing your professional services. These claims can include anything from giving incorrect advice or omitting a piece of information, to failing to deliver your service within a desired timeframe. Legal costs – The policy includes covering your legal costs in defending against a claim. Some insurers will even appoint an attorney to represent you.Examples
- A marketing consultant develops a drip e-mail campaign for a retailer that doesn’t generate the number of leads expected.
- A management consultant develops an organizational strategy to improve communications in a company, but problems persist at the client and communications don’t improve.
- A software developer fails to develop an app to the client’s specifications.
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