What is professional liability and why do we need it? A short presentation about what this coverage is and some examples of how this coverage could financially protect your business.

1. What is Professional
Liability/Errors and
Omissions Insurance?
And why do I need it?
RISKPRO ®

2. Professional Liability Defined
Professional liability insurance, also known as Errors &
Omissions, or E&O is defined by IRMI.com as "coverage
designed to protect traditional professionals and quasi-
professionals against liability incurred as a result of errors
and omissions in performing professional services. Although
there are a few exceptions, most professional liability policies
cover economic losses suffered by third parties, as opposed to
bodily injury and property damage (which is typically
covered under commercial general liability policies). The
vast majority of professional liability policies are written with
claims-made coverage triggers.

3. How does this specifically apply to me?
 Your State might require the coverage in order to satisfy a
licensing requirement
 You might have a contractual requirement between you and
a client
 But a practical reason would be:
 As careful and risk conscious as a business might be,
claims might arise from false or frivolous allegations
causing a business to incur defense costs.
 But of course.... there can always be the case of a
professional making an error or omission when rendering
professional services

4. Duty to Defend
 In most professional liability policies, your insurance
carrier has a duty to defend you, when that claim falls
within the policy's limits and scope of coverage.
 Professional liability/errors and omissions insurance is
designed to protect professionals, within the scope of
coverage for the professional liability policy, by defending
them and paying any judgments or settlements on claims
that may arise. The duty to defend is broad and includes
any false or frivolous allegations.

5. Examples of Potential Professional
Liability Claims
 A home inspector fails to see a crack in the drain pipe
located under the kitchen sink. Within a month of the new
homeowner living in the house, the pipe bursts while the
dishwasher is draining causing substantial water damage.
 An engineer miscalculates the load bearing weight of a
balcony. After 4 years of use, the structure collapses.
 A lawyer prepares the will of a wealthy executive who has
decided to leave nothing to his children. This lawyer fails
to make any mention of the children in the will, which is
required to legally establish the client’s wishes that the
children inherit nothing.

6. Conclusion
 Professional liability insurance is the proper coverage to
maintain in order to provide financial protection for your
business from allegations of negligence in rendering
professional services.

7. How Do I Get This Protection?
 Visit us online to complete an application or contact us
today.
 We will obtain competitive quotes from several insurers
so you can make an informed decision about this
important coverage.
 We are an independent agency, meaning, we work with
most of the top insurance providers in order to obtain a
variety of quotes with competitive premiums. And we
do it all for you... with no additional cost to you!

8. RISKPRO Insurance Agency, LLC
Gerald P Brunker, CPCU, ARM
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Insurance Agency, LLC
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 LinkedIn: Gerald Brunker
 Blog: www.riskpro.us/blog
 Email: brunker@riskpro.us