Professional Liability (also known as Errors & Omissions) is a by-product of Civil Liability.
Liability Insurance provides protection if you are held responsible for unintentionally causing harm to a third party. The damage may be bodily (injury), material (such as to a building or car) or non-material (pain, suffering, damage to reputation). The person responsible for the fault is obliged to compensate the victim.
If the damage caused stems from bodily injury resulting in bodily harm or loss, material loss or damage, personal injury including oral or written defamation, medical expenses. This constitutes Civil Liability.
If the damage caused is a direct result of professional services, this is reffered to as Professional Liability.
Professional Liability Insurance is designed to protect you against any actual or alleged negligence, error or omission in the provision of professional services, or resulting from your failure to provide them.
To successfully pursue a Civil or Professional Liability claim, the victim must prove three things: damage, fault and a link between the two.
Examples of Claims:
Transport agents run an increased risk of third parties claiming that they are responsible for the loss of or damage to their goods. Transport agents are at risk of being held liable for damage to or loss of goods, even if they have not physically handled them.
When there is a claim related to a shipment issue, all parties involved are bound by it.
Why Take out a Professional Liability Policy?
- To gain access to experts in the event of ongoing litigation
- To pay defense costs, which can be very expensive, and compensation
- To protect the company's financial interests
What Documents do I Need to Get a Quote?
- A signed insurance application form
- A copy of a standard contract
- A resume or biography of the company's principals
The eligibility of any claim is subject to the terms and conditions of the insurance policy. The terms, conditions and exclusions of coverage are governed solely by the insurance policy.
