Miscellaneous Professional Liability Insurance, or E&O

Leap | Carpenter | Kemps Insurance Agency | Mar 4, 2020 | minute read

Today, almost any business can find itself facing a liability lawsuit. A Miscellaneous Professional Liability lawsuit can put owner’s and other executive’s personal assets at risk including homes, cars, and other possessions. One simple mistake could cause financial devastation, as well as end your professional career. Many businesses don’t think they have an exposure to professional loss.

Here are some examples of industries that need Miscellaneous Professional Liability Insurance.
  • Medical professionals
  • Lawyers
  • Real Estate Agents
  • Contractors that provide management services
  • Banking
  • Accountants
  • Technology
  • Non- Profits
  • Architects

Professional Liability Insurance is sometimes called Errors and Omissions (E&O) coverage. Claims come from errors or omissions in the performance of professional services. Companies that perform professional services for a fee are exposed to E & O claims. Often claims result from overlooking a critical piece of information, misstating a fact, misunderstandings, forgetting to do something, or misplacing something. Here are a few actual claim examples:

  • A Marketing Consultant failed to send email advertising in a timely manner and the client had lost revenue of $150.000. The claim was settled for $125,000.
  • A Head Hunter placed an executive with a firm, but failed to complete due diligence regarding a non-compete agreement. The non-compete limited the executive’s ability to perform job duties. The new employer sued the head hunter for failure to disclose and won a $50,000 award.

At Leap / Carpenter / Kemps, Merced, CA largest locally-owned insurance agency, we have an experienced staff of professionals who understand that each business is unique and that the one-size-fits-all approach just doesn’t work.

Our agents have access to more carriers and more plans, and that means that they have more options to create the best possible combination of coverage to minimize your risks and lower your costs

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About The Author

LCK Insurance Agency is one of California's most prominent independent insurance agencies. They offer commercial business insurance, employee benefits, life & health insurance, and personal insurance.

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